What should I save annually for retirement if I expect to receive 7.5% interest? I am 22 years old.
Retirement planning is about managing your money so you can make the most of your retirement years. Your retirement plan should balance your needs, wants and the reality of your finances. A retirement plan can help you set goals, have a better idea of how much you need to save, and helps you choose what to invest in, and what investment vehicles will work best for you.
When you start saving makes a big difference in how much you need to put away. The younger you are when you start, the less money you may have to put aside regularly, thanks to the power of compounding. GetSmarterAboutMoney.ca has some tools you can use to help you estimate how much you may be able to save. Try the Compound Interest Calculator, RRSP Savings Calculator, and TFSA Calculator.
We are not able to provide advice on how much you need to save. Speak to a registered financial advisor to help you create an investment plan to reach your goals.