Almost a third (32%) of millennials admit they are “not at all knowledgeable” about retirement savings plans (RSPs), according to new survey by TD.
The survey found that only 50% of those aged between 18-33 know that the money in an RSP can help to purchase their first home and just 28% know RSP funds can help pay for full-time education or training as a mature student.
“Saving enough money for a down payment on a home can be difficult for many younger Canadians, so the ability to withdraw up to $25,000 from an RSP, or up to $50,000 for a couple, can help make it easier,” said Linda MacKay, senior vice president, personal savings and investing at TD Canada Trust.
“Building up an RSP from the earliest possible moment not only helps you save on income tax now, but could also help get you into your first home more quickly and lower your monthly mortgage payments down the road.”
Keep reading: http://www.benefitscanada.com/uncategorized/millennials-clueless-about-retirement-savings-plans-76102
© 2021 Abacus Data. All rights reserved.