As we move into RSP season, it’s a great time to consider ways to boost your retirement savings. The deadline to contribute for the 2024 tax year is March 3, 2025. Here are four tips to assist with your retirement planning:
1) Take Advantage of Unused Contribution Room: If you have unused Registered Savings Plan (RSP) contribution room, now is the perfect time to make additional contributions. This can help you maximize your tax-deferred savings, allowing your investments to grow more efficiently over time. Check your contribution limits and make the most of any available space. Consulting with a financial planner can help you identify and utilize these opportunities effectively and boost your retirement savings.
2) Consider a Spousal RSP: If your spouse has a lower income, contributing to a spousal RSP can be a smart move. This strategy helps balance future retirement income between you and your spouse, potentially leading to significant tax savings. By shifting some of the retirement savings to your spouse, you can take advantage of lower tax brackets in retirement. A financial planner for retirement can guide you through this process to ensure you’re maximizing the benefits.
3) Diversify Your Income Sources: Relying solely on your RSP for retirement income can be risky. Diversify your income streams by exploring other options such as Tax-Free Savings Accounts (TFSA), non-registered investments, or pension plans. Diversification can provide more stability and flexibility in your retirement years, allow for potential tax savings, and reduce the impact of market fluctuations on your overall income. A financial planner retirement specialist can help create a diversified income strategy tailored to your needs.
4) Utilize Group Retirement Savings Plans: Many employers offer Group Retirement Savings Plans with matching contributions. This is essentially free money, so make sure you take full advantage of it. Contributing to these plans not only boosts your retirement savings but also maximizes the benefits provided by your employer. Working with a financial planner near Kingston, Ontario, can help you integrate these contributions into your overall retirement strategy.
Remember, it’s always a good idea to consult with a financial planner to tailor your Retirement Income Plan to your specific circumstances and goals. Whether you’re looking for a financial planner near Kingston, Ontario, or need assistance with retirement-specific strategies, we are here to help you every step of the way. Please contact us for assistance.
Happy retirement planning!