Save for Retirement

 Living costs money and if you plan to be financially independent one day (not having to work to fund your lifestyle), then you need to ensure that you have adequate savings. Saving for retirement is like an installment plan: you pay into it for 30 or 40 years, then it pays you, for the next 20 or 30 years.

43% of couples in 2019 disagreed about what they need to save for retirement.

In Canada, we have numerous ways to save for retirement, such as buying and paying off a house. The Canadian government has created several savings vehicles that encourage us to save, collectively referred to as registered savings plans. Although the Tax-Free Savings Account (TFSA) is an account, not a plan, it too is a government created savings vehicle. Any asset or account that isn’t registered, is classified as non-registered.

In this section of the ProsperiGuide website, Save for Retirement, we explore the differences between registered and non-registered savings plans and examine the features and benefits of registered savings vehicles such as:

  • Registered pension plans (RPPs)
  • Deferred profit sharing plans (DPSPs)
  • Registered retirement savings plan (RRSPs)
  • The Tax-Free Savings Account (TFSA)