The so-called RRSP Season is on its way. TV, newspapers and magazines will soon be full of advertising to get you to make your last-minute RRSP deposits. And then RRSPs and retirement planning are often forgotten until the next deadline. But a little advance planning will get you more from your RRSP.
Start early. It's human nature to put things off. As there is no immediate consequence to delaying financial planning, unlike not paying your electricity bill, it's easy to just let RRSP deposits slide. But to get the most from an RRSP, start it as soon as you can. A 25-year old depositing $5,000 per year at 8% compounded annually will have $1,199,706 at age 65. A 35-year old will have about half that, and a 45-year old investing the same amount at the same rate will have less than a fifth. So begin your RRSP as soon as you can.