If you have just entered the workforce, retirement may seem a long way off. So far off, in fact, that you may be wondering if you need to bother contributing to a registered retirement savings plan (RRSP) yet.

The short answer to that question is this: it’s never too soon.

Anyone 18 years of age or older can contribute to an RRSP and the earlier you start, the more you’ll maximize your contributions. One of the big advantages of RRSPs is that your contributions entitle you to a tax deduction and generate investment income that isn’t taxable until it’s withdrawn (usually at a lower rate because retirement income is generally lower). The interest earned on your contributions also compounds, meaning the sooner you make contributions, the longer they’ll have to compound and grow.

Each year, you can contribute up to 18 per cent of your income (less the pension adjustment), up to a maximum of $22,000 annually.

When contributing to an RRSP, you can choose from many different investment options, including investment funds, guaranteed interest funds, stocks, bonds and more.

If you have never contributed before and you’re interested in learning more about RRSPs and your investment options, please contact North Winnipeg Credit Union at (204) 954-7450 or stop by one of our branches. We will be happy to help you get a jump start on your retirement planning.