Preparing for retirement early is key to sufficiently planning for life after your career. Sixty-one per cent of Canadians worry about depleting their money during retirement, according to a survey from Canada Pension Plan Investments. The survey also revealed that having a financial plan eases this concern.
It’s never too early to start planning for retirement. The amount you should save depends on your needs and savings strategy. It’s generally recommended to save 10–15% of your gross income.
Financial Planning for Retirement
A Registered Retirement Savings Plan (RRSP) can prepare employees for retirement. Deposited funds are taxed upon withdrawal, and when the funds within the account are invested, they compound over time. Employers may offer a matching program for RRSPs.
Tax-Free Savings Accounts (TFSA) can be used for any type of saving, including for retirement. Contributions are after-tax, so interest, dividends, capital gains, deposits, and withdrawals are generally tax-free. A TFSA can be used for mutual funds, securities, and bond investments as well.
To optimize the growth potential of your retirement account, it’s important to research the investment options available and to make selections to invest the funds so they can compound over as much time as possible.
Vesting is an important consideration when researching the options presented by an employer-sponsored retirement account. Vesting refers to the process of acquiring ownership rights to employer contributions. Depending on the type of retirement plan and your employer’s offerings, you may be immediately vested or may need to work a certain number of years to fully vest in your employer’s contributions.
The Canada Pension Plan (CPP) and Old Age Security (OAS) may help meet financial needs in retirement, depending on eligibility. Learn more about retirement preparation from the Government of Canada.
For questions specific to your employer’s offerings, reach out to your company’s HR or benefits team.
About Express Employment Professionals
At Express Employment Professionals, we’re in the business of people. From job seekers to client companies, Express helps people thrive and businesses grow. Our international network of franchises offers localized staffing solutions to the communities they serve across the U.S., Canada, South Africa, Australia, and New Zealand, employing more than 11 million since its inception. Learn more at ExpressPros.com or ExpressPros.ca.
Last Updated on April 7, 2026
