Your saving incentives

Most of us find many reasons to delay saving for retirement, or channelling less money into our RSPs than we know we should. If you need some motivation to help you save for retirement, consider these benefits of starting — or boosting — your savings:

  • You’ll generate a significant tax savings. For example, if your marginal tax rate is 40% and you contribute $2,500 to your RSP, your taxable income will be reduced by $2,500, for a tax saving of approximately $1,000.
  • No matter how little you put aside, every dollar you contribute can help to increase your financial security when you retire.

Once you start saving, you’ll enjoy a level of emotional security knowing that you are being proactive about saving for your retirement.