How to reach your retirement planning goals

Even if retirement is a number of years away, it’s never too early to start planning. The following are some fundamental steps you can take now to help ensure that you reach your retirement goals in the future when you are ready for the next phase in life.

Start retirement planning early. The earlier in life you start contributing to an RSP, the more time there is for the retirement income earned in your RSP to compound. View the benefits of starting early in life.

Contribute to your retirement savings every year. It's usually easier to make regular, monthly contributions to your retirement savings than a larger one every year or two. View the benefits of investing annually.

Invest in your RSP regularly. With a Continuous Savings Plan (CSP), you can make automatic regular investments directly from your bank account into your RSP. Learn more about Continuous Savings Plan.

Maximize contribution room. The difference between what you contribute to your RSP and the maximum allowable contribution is carried forward from year to year. Check your Notice of Assessment from Canada Revenue Agency (CRA) for the total allowable contributions you can carry forward.

Take advantage of an RSP loan. If you have unused RSP contribution room, you can benefit from a Retro-Activator^® RSP Loan. This is an installment loan (minimum $7,500) with a fixed or variable interest rate and repayment periods of up to 15 years.

If you need funds up to $18,000, choose the RSP ReadiLine^™ Account. You get a low, variable interest rate line-of-credit specifically to invest in BMO Financial Group RSPs – which can be mutual funds or GICs.

Diversify for growth. To increase the growth potential of your RSP, put your money in different types of investment options. Diversification can help to increase your RSP’s overall return and minimize the risks. The greater your returns, the larger your RSP and retirement income will grow.