Skip navigation
    Canada
    Canada
    Flag of the United States of America
    US, link
    Flag of People's Republic of China
    China, link
    • English
    • English
    • Français, lien
    • Français, lien
    • 简体中文, link
    • 繁體中文, link
      Canada
      Canada
      Flag of the United States of America
      US, link
      Flag of People's Republic of China
      China, link
      • English
      • English
      • Français, lien
      • Français, lien
      • 简体中文, link
      • 繁體中文, link
      News Releases Signup for News Alerts Media Contacts Executive Bios Corporate Fact Sheet BMO Expert Insights
      Navigation skipped

      News Releases

      BMO's Financial Tip of the Week: Key to Retirement Savings Success...Save Early, Save Often

      TORONTO, ONTARIO--(Marketwire - Jan. 10, 2012) - As part of BMO Financial Group's ongoing commitment to financial literacy and 'Making Money Make Sense' for Canadians, BMO will be releasing a financial tip every week in 2012.

      BMO's Tip of the Week:

      Secure your retirement by opening a Registered Retirement Savings Plan (RRSP) as early as possible and contribute to it on a regular basis (regardless of the amount)

      Opening an RRSP early in life, combined with making regular contributions, is one of the most effective ways to ensure you will have enough funds to see you through your retirement years.

      • Start off investing small amounts and gradually increase them as the years progress; this will help boost the value of your RRSP. Additionally, increasing your contributions as your salary rises through the years is a great strategy that can help increase your RRSP savings.

      • Investing consistently over a longer period of time can benefit your portfolio, even in times of market volatility. As you are purchasing more shares when prices are low and less when prices are high, your average return will be greater than if you invested all your money at once.

      • Pre-authorized payment plans, through automatic payments from your paycheque or bank account, are an effective way to ensure regular contributions are made to your RRSP account and will help ensure you are saving on a regular basis.

      • Sit down with a financial professional who can help you develop a strategy for making regular RRSP contributions that work for you.

      Here is how an early start, combined with regular contributions, can work to your advantage:

      Start investing at age 30 Start investing at age 40
      Retirement Age 65 65
      Monthly Contributions $ 100 $ 100
      Rate of Return 7 % 7 %
      Total Savings $ 180,105 $ 81,007
      Difference $99,098

      "Saving for retirement is all about starting as early on in life as possible and making contributions on a regular basis," said Tina Di Vito, Head, BMO Retirement Institute and author of 52 Ways to Wreck Your Retirement… and How to Rescue It. "Starting early, even with small, regular amounts, can greatly contribute to your savings down the road."

      For more information on saving for retirement, please visit: www.bmo.com/retirement.

      BMO's Financial Tip of the Week:

      Week one: Consider investing in a Registered Retirement Savings Plan (RRSP) and take advantage of tax incentives when saving for retirement.

      For further information:
      Media Contacts:
      Rachael Mckay, Toronto
      416-867-3996
      rachael.mckay@bmo.com

      Sarah Bensadoun, Montreal
      514-877-8224
      sarah.bensadoun@bmo.com

      Laurie Grant, Vancouver
      604-665-7596
      laurie.grant@bmo.com