For the boomer generation, the concept of saving for a comfortable retirement has always been an important goal.
"Even for those who have set up retirement savings plans, meeting retirement goals can be a challenge," says Lee Anne Davies, head, Retirement Strategies, RBC. "This is especially true for those who haven't saved diligently or who have been faced with a mid-life job loss or divorce. However, it is never too late to catch-up."
Consider the following as strategies to help meet your retirement goal:
- Focus on your long term goals: Build a financial plan personalized for your long term priorities and don't let short term market or economic changes sway you from your goals.
- Create a savings habit: Regular investing using strategies, such as an automatic RRSP contribution program, will help build a nest egg from small but consistent savings. Become informed about your unused contribution room and consider topping up your RRSP when you receive work bonuses or tax refunds.
- Reduce your debt: Making regular payments to reduce debt can make it difficult to find money for an RRSP contribution. Generally, the best strategy is to start reducing high-interest debt, such as credit card debt, then focus on lower-interest debt, such as a mortgage.