Many immigrants arrive with little knowledge of Canada’s pension system, including workplace plans, government benefits, and personal savings plans. Even longtime residents are finding that their retirement plans are affected by the ongoing cost-of-living crisis.
A recent poll commissioned by the Financial Services Regulatory Authority of Ontario (FSRA) found that retirement planning isn’t a high priority for many Ontarians today.
A large majority—81 per cent of people—are more concerned about paying for necessities like groceries than saving for retirement. While 44 per cent said that the high cost of living is preventing them from saving for retirement.
To bridge this gap, FSRA has launched its annual Pension Awareness campaign, equipping Ontarians with essential tools and resources.
Here’s a 5-step strategy to help you make informed decisions about your retirement:
- Understand your workplace pension plan: If you’re employed, find out if your workplace offers a pension plan. Take the time to understand how contributions work, your benefits, and when you start receiving payouts. Having a clear understanding of your pension plan will help you make informed decisions and better prepare for your financial future.
- Explore workplace retirement savings plan: Check if your employer offers a retirement savings plan, such as a Registered Retirement Savings Plan (RRSP) or a Deferred Profit Sharing Plan (DPSP). If not, consider opening a Tax-Free Savings Account (TFSA) or other personal savings options to secure your
financial future. - Learn about employer matching: If your employer matches your pension contribution, contributing the maximum amount can help you grow your retirement savings faster.
- Determine what you can save: Whether it’s $5 or $50 a month, consistently setting aside even a small amount can make a big difference. Begin by reviewing your monthly budget to identify areas where you can reduce spending and redirect those savings. The sooner you start, the stronger your retirement plan
will become. - Make pension plans part of your job search criteria: When considering job offers, salary, benefits, and vacation time are often top priorities. But don’t forget to look at pension plans as well. Take the time to compare pension options, employer contributions, and types of plans.
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