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BMO Bank of Montreal

February 01, 2012 08:00 ET

BMO Retirement Tips of the Day: Understand What a Retirement Plan Is and Start Saving Early

TORONTO, ONTARIO--(Marketwire - Feb. 1, 2012) - As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement…And How To Rescue It.

Tip Number One:

Understand what a retirement plan is

Having a retirement plan is more than making contributions to an RRSP or participating in a company pension plan. A retirement plan is a living, breathing document that can change from year to year, depending on your life circumstances. A complete plan consists of the savings phase - steps to get to your retirement - and the spending phase - steps to ensure your money will last you through your retirement. The following questions can help you begin to form your retirement plan:

  • When do I want to retire?
  • How will I spend my time during retirement?
  • How much money will I need to afford my ideal retirement?
  • What will my retirement income be?
  • How much do I need to save?

Tip Number Two:

Don't let "feeling young" lead to procrastination

With 50 being the new 40 these days, many of us are feeling younger than our age. However, do not let this delay or slow down saving for retirement. It is never too early to start. In fact, the earlier one starts saving, the better. Time is the single biggest influence on how much savings one can accumulate because of the impact of compounding growth.

For more information on retirement: www.bmo.com/retirement.

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