When it comes to accumulating wealth, your biggest asset may be time.

For example, suppose “Fred” opens an RSP when he’s just 25 and contributes $1,000 at the end of every year. Assuming he earns 5% annually, he’ll have almost $121,000 by the time he’s 65.

“Simon,” on the other hand, doesn’t start contributing to an RSP until he’s 45. Even if he contributes twice as much, or $2,000 at the end of every year, he’ll have just $66,132 by the time he’s 65.

That’s less than half of what Fred has, even though he’s saved twice as much. Even if Simon triples his contributions he’ll still have less than Fred — $99,200 versus Fred’s $121,000.

The moral of the story? The best time to start saving is today!
Plan your own RSP savings strategy with the RSP Contribution Calculator.