Seniors say it’s wise to contribute

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This article was published 06/02/2024 (590 days ago), so information in it may no longer be current.

In Brandon, a chorus of seasoned voices echoes a timeless financial anthem — Registered Retirement Savings Plan (RRSP) contributions pave the way for a golden future.

Many seniors believe RRSPs stand tall among investment options, regarding it as a clear path to financial security that offers a road map for the younger generation to navigate the intricate landscape of retirement planning.

With almost 50 years of RRSP contributions under his belt, Brandon’s Seniors for Seniors Co-op president Don Kostesky reflects on the advantages gained during his working years.

“Contributing to RRSPs for almost 50 years gave me a tax deduction that usually amounted to around $300 on every $1,000 invested,” he shared with the Sun. “It’s also a definite tax advantage.”

Kostesky advises anyone who is working and over the age of 18 to start investing in RRSPs early, highlighting that the earlier one starts, the more substantial their retirement portfolio will be by the age of 71.

Observing the inadequacy of current government pensions in sustaining a reasonably good lifestyle during retirement, he emphasized the importance of having a personal pension plan.

“It’s essential to have a self-plan designed to ensure a comfortable income during retirement, allowing you to enjoy life,” he stressed. “While many employed individuals benefit from company pension plans, those without such provisions shouldn’t overlook RRSPs as a means to build a substantial retirement income.”

On the other side of the spectrum, retired senior Sylvia Barr’s fervent endorsement reinforces the belief that RRSPs are an essential investment tool.

“I topped mine up every year. I put the maximum amount in every year that I could,” Barr told the Sun. “I strongly recommend that individuals contribute to RRSPs — whether it’s topping them up or contributing as much as possible. Seize every opportunity to set money aside, maximizing potential tax benefits and ensuring a secure financial future.”

Reflecting on her own experience, the former Shell Canada employee said she sought the guidance of a financial adviser decades ago when she started her contributions. She acknowledged that while various investment options are available, RRSPs stand out as a reliable choice that has yielded profits over the years.

There is a common misconception that people may not have enough money to consult a financial adviser, she said, but added that seeking professional advice, regardless of financial standing, is essential.

“The key is to start early, even with modest amounts like $100 or $1,000. The sooner you begin, the better,” she said. “No matter your financial standing, it will surprise you that there are many options you may not have known you possessed.”

Barr described the timeless significance of RRSP contributions as a key pillar for a secure and fulfilling retirement, adding that her experience serves as a beacon of financial guidance for the younger generation for a prosperous financial future.

» aodutola@brandonsun.com

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