(NC)-Near the end of every RSP season, millions of Canadians scramble to make their last-minute RRSP contributions. Although contributions can be made all year-round, most Canadians are RSP procrastinators, resulting in this annual rush. This isn't surprising. According to Desjardins Financial Security's 2008 Rethink Retirement survey, more than one in three respondents (37 per cent) admitted to basically giving up, because they feel that they will never be able to accumulate enough savings to retire no matter what they do. The survey also showed that Canadians (57 per cent) are tired of being told that they are not saving enough.
Time to get motivated
Canadians know they must prepare for the inevitability of retirement, but part of the problem is that many have taken on too much debt. "Our survey also indicated that people are overwhelmed by the many financial choices on the market," said Michael Aziz, regional vice president of sales investment products at Desjardins Financial Security. "But, we suggest that Canadians can find ways to work around debt repayment and to start savings plans. Keeping it simple with a basic RSP account is a great solution."
Take small steps towards retirement saving
"Research shows that making regular contributions to your RSP will significantly increase your savings over time, compared to investing annual lump sums," said Aziz. "Most Canadians expect to retire later than previous generations. So, making even small contributions now is a positive step towards a secure future, thanks to compounding interest over time."
So, as the RSP deadline looms, take this opportunity to create a regular savings plan and invest what you can afford. Imagine how you would like to live when you retire and build those expectations into your plan. Financial success takes discipline, so seek advice when needed. Most importantly, take your time, be realistic and remember every little bit counts towards a solid financial future.
More information on this topic is available online at www.rethinkretirement.ca.
- News Canada