What To Do If Your Employer Does Not Offer A Retirement Plan? | Refresh Financial

What To Do If Your Employer Does Not Offer A Retirement Plan?

 Employer Does Not Offer A Retirement Plan?

Canadians who are employed full-time typically have retirement plans built into their employment, and employers will often match your RRSP contributions as a benefit of your employment. However, that's not always the case with some of us. If you're working for an employer who does not offer a retirement plan, what are you supposed to do? If you're wondering how you're supposed to prepare, keep reading! We're going to go over what to do if your employer does not offer a retirement plan.

At the end of the day, it's your responsibility to save for your retirement, but these are some great tips you can utilize!

1. Aim To Save 15% Of What You Make

- Saving 15% of your income over the years will ensure that you have enough to live off once you are no longer working. 15% should be the bare minimum of what you end up saving for retirement.

2. Put Your Savings Into TFSA's

- A TFSA is a tax-free savings account that Canadians can contribute up to $5500 per year. Try to hit that maximum every year.

3. Make RRSP Contributions

- Once you've maxed out your TFSA contributions, start making RRSP contributions each year. These contributions are tax-deductible and can help reduce taxes you may owe.

4. Get Educated On Investing

- Carve out some time for yourself to study how investing works. Speak with a financial advisor to discover the best route to making your money grow before retirement.

5. You Still Have A Canadian Pension Plan

- All working Canadians are eligible for the Canadian Pension Plan, which will help to replace your income once you retire.

It’s always nice to have the matched contributions from your employer, but if you don’t, it’s not the end of the world. There are still many avenues you can take on your own to ensure that your retirement transition is an easy one.

It may seem scary at first, taking that amount of money out of your regular monthly cash flow, but nothing is more valuable than your own peace of mind. Try and create a long-term plan for yourself. Document your plan and seek advice from professionals. If you're including the steps above, you're definitely on the right track!

What are your pointers for those who have to save on their own for retirement? Let us know in the comments!

 

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