Groceries, clothes and energy bills. These are just some of the many day-to-day items affected by inflation. But inflation also affects your retirement, and while pre-retirees are saving for a lot of things, saving for retirement remains their priority.
The current environment may be challenging, but Canadians understand what it takes to improve their financial health — saving and planning ahead.
Contributing to your RRSP could be an important part of your savings. Some tax advantages that make it a valuable tool for retirement savings are:
- Contributions are tax-deductible – Contributions can reduce your taxable income for that tax year
- Any investment growth or income earned within an RRSP is exempt from annual tax
- Lower tax payable – Taxes are paid at the time of withdrawal, ideally, when you’re in retirement or otherwise in a lower tax bracket than when you made your contributions
- Reducing household taxes with a Spousal RRSP – the higher income earner receives the tax deduction and the retirement income is shifted to the lower income earner
To reduce your taxable income for 2023, the RRSP contribution deadline is February 29th, 2024.
However, please reach out to me asap and make your contributions before February 9th , to avoid any potential processing issues during this busy time.
To improve your financial health, saving is just one thing. Planning is another. I can improve your investment savings and put a financial plan in place to ensure you’re on track to meet your goals. Reach out to me and let’s work together to improve your overall financial health.