I’m Saving and Planning for Retirement

When it comes to saving for retirement, a Registered Retirement Savings Plan (RRSP) is a popular choice for most Canadians. A Tax-Free Savings Account (TFSA) can also be used to save for retirement, but it gives you the flexibility to save for short-term goals, too.

Here are a few ways the RRSP and TFSA stack up:

• Your savings in an RRSP grow tax-deferred while your savings in a TFSA grow tax-free.
• RRSP contributions are tax-deductible, helping you to pay less tax in your earning years. TFSA contributions are not tax-deductible.
• You have to earn an income to put money in an RRSP. With a TFSA, you can contribute even if you aren’t working and earning.
• You can’t keep saving in your RRSP after age 71—a TFSA lets you make contributions for life.
• Withdrawals from a TFSA are never taxed. Withdrawals from an RRSP are taxed the year you withdraw the money.

To compare more features and benefits, see TFSA vs RRSP vs eSavings

Your retirement will be as unique as you are. Travel, sports, hobbies … no one will combine these and other activities the same way you will. Your retirement plan should be just as unique.

After all, no one has the exact same retirement benefit plans, tax considerations and priorities as you. That’s why you need a personalized approach to provide steady income when your regular paycheque stops.

Working with an RBC Financial Planner is one of the easiest ways to get started with your retirement plan. In addition, you can use resources like the ones below to help guide your conversation:

• Defining Your Retirement
• How Will I Fill My Time in Retirement?
• Retirement Planning: Top Things to Consider
• Where Will My Retirement Income Come From?
• Your Future by Design^® Tool

Avoiding emotional investing, following proven principles and adjusting your plan for the right reasons can help you reach your goals.

• Negative headlines and market volatility can make it tempting to change a well-designed investment plan. While selling off your portfolio may make you feel better, this decision could mean lost opportunity and not achieving your long-term investment goals.
• Stay on track with these five principles of successful investing:
  • Invest early
  • Invest regularly
  • Invest enough
  • Diversify
  • Have a plan

  Explore These Principles

• Adjust Your Plan as Needed
  

  Your investment plan should be dynamic, not static. Here are three “levers” that can be adjusted over the years to meet your changing needs.
  

  • - Lever 1: How Much You Invest
    Concerned about not having enough money to meet your goals? Consider adjusting how much you contribute on a regular basis. Even a small increase can have a significant impact long-term.
  • - Lever 2: How Long You Invest
    You can extend or shorten your investing time horizon based on your needs. For example, postpone retirement or re-enter the workforce if you want more time to build your wealth.

  • - Lever 3: How Much Risk You Have
    This lever should be shifted carefully as your risk profile is core to your investment plan. The best way to do this is to review your portfolio regularly with your RBC Financial Planner.

MyAdvisor is a secure, one-of-a-kind online service that combines interactive planning tools and advice from a live advisor to help you be better prepared for retirement. It’s exclusive to RBC clients, easy to use and available to you at no extra cost.

• See what you have with more certainty. MyAdvisor show’s you how you’re doing with powerful visuals and forecasts of your goals, net worth and cash flow.
• Link outside accounts for a complete picture. Have savings and investments outside of RBC? MyAdvisor lets you quickly link them for an up-to-date look at your money.
• Receive personalized advice. Meet with a live advisor through video chat, by phone or in person to review your retirement plan, talk strategy or to simply ask a question.
• Make changes to your retirement savings plan at any time. Want to see a recommendation from your advisor or make a change to your plan? Simply log in to your MyAdvisor dashboard.
• Stay on track toward your goal with email alerts. Progress alerts let you know whether you need to adjust the amount you are saving in order to reach your retirement goal.
• Get started in a few simple, hassle-free steps. In minutes, you’ll have an idea of where you stand, see recommendations to help you grow your savings, and be able to book a one-on-one with an advisor.

Read more about MyAdvisor.