Make retirement saving easier with five simple tips

While saving for retirement should be a priority for many of us, it’s not always easy to face the challenge and give this important planning task the attention it deserves.

At least that was a key finding in a recent Scotiabank survey conducted by Harris/ Decima, which concluded that, while a majority of Canadians recognize that it is up to them to save for retirement ( 74%), two- in- five admit that they are not on track to achieve their retirement goals ( 42%).

This is understandable, since we all have seemingly a thousand more urgent things to do. Building a retirement plan can seem complex and filled with questions, such as how much should I save, what are the right investments for me and how will they be affected by today’s markets?

You may find solutions to some of these questions with five simple saving tips:

1. The earlier the better: Start saving as early as you can, or work on catching up as soon as your finances allow, so you can maximize any unused RRSP contribution room.

2. Use the power of compounding: Without a doubt, saving little by little adds up, thanks to time and compound growth. It’s also much easier to save when you have a pre- authorized contribution to a retirement plan.

3. Take advantage of tax shelters: Whether you choose an RRSP ( registered retirement savings plan) that defers tax or a TFSA ( tax- free savings account) that earns tax- free income, your savings will grow faster.

4. Aim to reduce debt: If it’s hard to find the extra money to put toward your savings goals, focus on lowering your debt by paying down your mortgage or other loans. Then gradually increase your retirement contributions.

5. Find a financial advisor: You don’t need to be an expert to make the right decisions to meet your goals. A trusted advisor can answer all of your questions and provide help along the way.