On April 18, following a presentation by David Burns and Associates, the CPF CoED established a committee to review existing staff benefits and to survey staff on needs for the coming years. Committee membership composition: Glyn Lewis, Betty Gormley and Cathy Stone. ACTION: Watch for the upcoming survey to make your needs known. Importance of RRSP Saving – Especially for Female Workers, by Matt Burns from David Burns & Associates, matt@david-burns.com These days, women are increasingly expected to take care of their own financial futures. The traditional role for women, one in which women married in their twenties, started a family and depended on a spouse to support their retirement has virtually disappeared. Today: - Women tend to outlive men. According to 1990 Statistics Canada data, women lived to age 80 on average, as opposed to age 74 for men.
- Women have less time to build up retirement funds. They have only two decades of employment to save for their retirement, instead of the four decades that most men get. (Women's Financial Futures: Mid-Life Prospects for a Secure Retirement, 1995).
- Only about 20% of women who filed income tax returns in 1991 contributed to RRSPs.
If you're female and want to ensure financial dignity in your retirement, seriously consider these suggestions: - Make as large an RRSP contribution as you can afford, every single year, starting right now.
- If possible, make up for past years when you couldn't contribute the maximum. You are entitled to carry forward unused contributions indefinitely, going back to 1991.
- Determine what you've got in RRSPs -- yours, your partner's, and spousal plans. You don't want to have to scramble for any of this information late in life, especially if you are on your own.
Speaking of spousal RRSPs, they can help you build equal retirement assets and ultimately earn approximately equal incomes during your golden years. Your partner can buy you a spousal RRSP instead of making an RRSP contribution in their own name. They get the tax deduction, and you get the money in your hands. As long as you leave the money in your RRSP for at least three years, the money will also be taxable in your (presumably) lower-income hands when it comes out. Reverse this strategy, of course, if you make more money than your partner. |