Valley First

Benefit of Monthly RSP Contributions

Make the most of your retirement savings with monthly RSP contributions

RSP season begins on the first of January each year and gives Canadians 60 days to contribute to their RSP. The benefits? An RSP retroactively reduces your income for the year and may even get you an income tax refund. Unfortunately, when RSP season rolls around, many of us are too financially strapped from the holiday season to come up with a few thousand dollars to contribute. Many of our members take advantage of our RSP loans, but they aren’t an ideal solution for everyone.

The benefit of monthly RSP contributions

Did you know you can make monthly contributions to your RSP throughout the year? All you need to do is visit your branch and set up a pre-authorized contribution plan—the dollar amount you authorize will be automatically deducted from your account and transferred to your RSP.

Plus, monthly contributions to your RSP earn you more money than an annual lump sum would. Your money will go to work sooner and you’ll get higher returns. Best of all, you don’t have to scramble to find money at the beginning of each year.

Creative ways to contribute to an RSP

If you’re like most people, you live from paycheque to paycheque and feel you’re too financially strapped to come up with enough money to make a monthly contribution to a Retirement Savings Plan. With a little ingenuity, almost anyone can save the cash to make a contribution. Even a small contribution each month can go a long way!

Here are a few ideas to get you started:

  • Our BIGChange® program is a great way to find a little extra cash in your budget each month. BIGChange® rounds up your debit purchases to the nearest dollar. You can choose to direct this extra change to a high-interest savings account. At the end of the year, you can use your BIGChange® savings to invest in an RSP.
  • Only pay for what you use—have a look at the services you're paying for each month and determine whether you can justify the cost based on your usage. Do you need a land-line and a mobile phone? Do you pay for subscriptions you don't read? Do you need cable if you aren't home that often?
  • Downsize your life—cut back on non-essential spending each month to free up money for your RSP. Skipping those morning coffees, meals out, and impulse purchases can lead to a better future.

 

Talk to us

Whether you’re looking for more information, or you’d like to set up a pre-authorized contribution plan, you’ll find our contact information here.
We encourage you to visit one of our branches for more information on how Valley First can make things simple!