Tax documents: For all tax receipts, see mailing schedule.
On December 6, the Bank of Canada (BoC) held its policy interest rate at 5% as the economy continued to show signs of cooling. If inflation remains under control and declines toward its target, the BoC has signaled it may begin lowering rates. However, the BoC also said it remains on guard and any notable spike in inflation may prompt it to raise rates again. The next interest rate announcement is slated for January 24, 2024.
In the Spotlight – Saving for retirement is essential
Do you find yourself overwhelmed by expenses associated with daily life? Is debt piling up, especially as interest rates rise and the cost increases for servicing your mortgage, credit card, vehicle loan and line of credit? You’re not alone. Life has become more expensive in these inflationary conditions and it’s getting harder to make ends meet.
So, why are we talking about the need to save for retirement? Of course you should focus on managing your current level of debt, but you can’t ignore that retiring comfortably is an important financial goal – perhaps your most important – and the one that requires the most planning so you have enough savings to sustain you through your later years. How much money you’ll need in retirement depends on factors like your health, where you’ll live and what type of lifestyle you anticipate.
Fortunately, there are several vehicles to help save for retirement. For instance, the Registered Retirement Savings Plan (RRSP) has been around since 1957, empowering Canadians to build wealth by offering tax breaks when you contribute to an RRSP, and tax-deferred growth from investments held in your plan. Some employers will even match a portion of the contribution amount you make toward your company RRSP or pension plan, helping you grow wealth even faster.
What if? - Inflation is impacting your finances.
- Increased expenses
- Markets become more volatile
- Savers can benefit
According to Statistics Canada’s latest figures,2 less than 25% of Canadian tax filers made an RRSP contribution in 2021, even though the RRSP is a proven way to save for retirement.
Did you know?
As people get older, they may wonder if it’s too late to save for their impending retirement. True, you won’t benefit as much by waiting to start saving, but it’s never too late. On the other hand, it’s also never too early to create a retirement plan and begin saving immediately.