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Ways to save for retirement

​​Deciding how and where you save your money is big part of your retirement plan. In Canada, the federal government and employers offer incentives to help you save money and build your retirement nest egg.

3 ways to save for retirement

  1. RRSP – Lets you reduce your taxable income. Your savings grow tax-free as long as your money stays in the plan. You choose how to invest your savings. Learn more about RRSPs.
  2. TFSA – Lets you save tax free for any goal. As of January 1, 2013, you can save up to $5,500 a year and withdraw it whenever you want without paying any tax. Learn more about TFSAs.
  3. Workplace pension and savings plans – Pension plans, group RRSPs and other savings plans can be a convenient way to save because your contributions come off your pay cheque. And if your employer matches your contributions, your savings power is doubled. Learn more about pension plans.
Watch this video on the building blocks of retirement savings, a discussion between Globe and Mail columnist Rob Carrick and Sherry Cooper.
 

 Related resources

 
Planning your RRSP contributions: Gary, Kevin and Judith’s story
Saving priorities with Malcolm Hamilton and Rob Carrick
Building a retirement portfolio with Alexandra MacQueen and Rob Carrick

2 key points

  1. You can deduct your RRSP contributions, up to certain limits, from your taxable income. You pay tax on withdrawals.
  2. You can't deduct your TFSA contributions. But you don’t pay tax on any withdrawals.