There’s no denying that the young people of this generation save more as compared to their counterparts from the previous generation. But saving for retirement is still not on the priority list of people in their 20s. With so many financial priorities and aspirations, the retirement planning often gets pushed away. If you are in your 20s, you must understand that saving for a pension is much important than you realize at this stage. Compound interest, undoubtedly, plays a crucial role but there are other valid reasons that make early saving a beneficial deal for happy retirement. Here, we will talk about five good reasons why you should start saving for your retirement at the early stages of your career.
RRSPs and TFSAs both offer tax-saving benefits and opportunities for your money to grow. However, there are a few key differences between them. For example, contributions to an RRSP are tax deductible while TFSA contributions are not. Thus, for some people, an RRSP may be ideal while for others TFSAs may make more sense. Here are a few situations where it would be better to invest in TFSAs.
When you think about retirement, one of the things that you can think about is that you will already be quitting your job. And when you quit your job, it also means that you will no longer have a stable flow of income. It sounds scary, but you know what? This doesn’t have to be the case. Who says you can’t make a lot of money when you have already retired from work?