The Big Story How to find the money to make an RRSP contribution
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Feb 23, 2025 Julie Petrera, a senior strategist at Edward Jones, shares vital insights on retirement savings and RRSP contributions. She discusses the importance of early investment and how psychological barriers can hinder savings. Julie highlights concerning trends among different demographics, particularly the decline in contributions from younger Canadians and gender disparities in retirement planning. She also explores alternative savings strategies, comparing RRSPs and TFSAs, emphasizing the need for professional guidance to enhance financial planning before the looming contribution deadline.
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Declining RRSP Contributions
- Fewer Canadians plan on contributing to their RRSPs this year compared to last year, dropping from 49% to 39%.
- Even fewer Canadians plan to contribute the maximum amount, decreasing from 21% to 15%.
Impact of Not Contributing
- Not contributing to RRSPs early can significantly impact long-term growth due to missed compounding opportunities.
- The maximum RRSP contribution limit can seem daunting, discouraging some from starting.
Small Contributions Matter
- Even small RRSP contributions are better than none, promoting a positive mindset towards retirement savings.
- Shift from aiming for the maximum contribution to contributing what's feasible, emphasizing any amount's value.