Top 10 Reasons to Save for Your Retirement

In these first (or last) weeks of RRSP season, here are some excellent reasons to make sure you Do Not Wait! to save for your retirement.

1- Realize Your Retirement Dreams

Go ahead, I dare you: meet your financial planner or investment advisor and find out what you need to do to Realize Your Retirement Dreams!  I am positive that putting cash aside now for your days after work is over will top the list of steps you’ll want to follow.

2- Take Back The Cash You Loaned to the Government

If you don’t think about RRSPs this way, it’s time to start.  An RRSP contribution reduces your taxable income and as a result, reduces your tax payable.  More often than not, it means you will get an income tax refund.  See if you can reduce your tax withheld at source if you contribute to your RRSPs at the beginning of the year or on a weekly / biweekly basis.

3 Having Options Later in Life Is Worthwhile

These days, everywhere you look, the media and legislators are worried about the people with a lack of retirement savings.  You need motivation, how about this: having options later in life is worthwhile.  I don’t mean Freedom 55, living on a sailboat, how about deciding what you want to eat this week (stay away from cat food and ramen noodles).  Pick and choose your leisure activities, the clothes you wear, the gifts you want to give your grandchildren, etc. Saving for your retirement can help afford you with choices later in life.

4 You Are Healthy and Could Live a Long Time

This might not apply to everyone, if not you have more important worries.  If so, being healthy and living a long time can be expensive.  Make sure you have enough income throughout retirement by saving now!

5 Healthcare Costs Are Not Going Down

If number 4 doesn’t apply beware, healthcare costs are not going down.  Even if you live in Canada, it seems that taking care of your health Costs!  Whether its parking at the clinic or hospital, tests or heaven forbid: you need treatment or therapy. Saving for your later days can allow you the best health care.

6 Working as a Walmart Greeter is Not Your Thing

Don’t get me wrong, many people enjoy working and being a walmart greeter could be your thing.  If not, see number 1.

7 Saving Money is Rewarding

Far from being just a pun.  It is true, looking at your retirement savings or investment account can put a smile on your face.  Reward yourself now and later by saving money now.

8 Investing is a Hobby

Take a look around, there are millions of people who find that investing is a hobby.  If this isn’t you, see number 1.

9 Enable Yourself to The Fruits of Your Labor

Put yourself in a position to enjoy the fruits of your labor.  I have never met anyone who said they didn’t work for their retirement.  I have met many folks who wished they had more savings set aside to better enjoy their days after working all those years.

10 If You Don’t, No One Else Will

If none of these other reasons have you convinced, remember, no one else will save money for Your retirement!  The list of businesses that are reducing the pension they offer employees is as long as my arm.  Governments abroad and soon, closer to home are looking at ways to pay out less (and later) in terms of retirement benefits.  So take care of your retirement, Do Not Wait! to make your RRSP contribution.

Do you contribute at the beginning of the year, throughout or at the last minute?

Author: Robert

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