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Financial Fitness - March 2019

Whew, you made your RRSP contribution by March 1, which means you have the choice of using the deduction on your 2018 or 2019 taxes.

One of the best ways to ensure saving for retirement is not left to the last minute is by making regular payments throughout the year. An easy way of doing that is through your company’s Group RRSP. If your company offers a Group RRSP you should definitely consider participating. In many cases, employer will kick in a certain percentage of contribution based on position and/or length of employment. Your company doesn’t offer a Group RRSP? There are many benefits to a Group RRSP, for employees as well as employers.

-Tax benefits. Your contributions are made with pre-tax income, reducing your taxes each pay

-Out of sight, out of mind. Your contributions are coming off your pay cheque automatically.

-Choice. You usually are able to choose how your contributions are invested.

-Access. There are tax implications, but you can usually access your money at any time. There may be limitations on accessing your employer’s contributions.

-Dollar Cost Averaging. By investing on a regular basis you buy into the market at the current value, whether up or down.

-Employers benefit by providing a value add which can help with the retention of employees.

This leads to greater employee satisfaction, which helps both employees and employers.

Ask your employer if Group RRSPs are not currently offered. It is important that both employees and employers understand the benefits of Group RRSPs.

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