Quote:
Originally Posted by Derek Sutton
So this isn't going to set any of us for for early retirement but I will share something I found out recently. My company has no pension but they match RRSP contributions up to 5% (pre tax), it is all through Manulife. You can go online and change your contirbution % how you want. I tinkered with mine for a bit last year and found that my take home is (very) slightly more by increasing my contribution from 5% to 7%. Son instead of saving 10% annualy I save 12% and get an extra $14 a month on my pay cheque.
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If your employer is matching, you put as much in as they will match, as you are doing. It's a no-brainer for the free money. If you can afford to do more, then the decision is whether to put it into the group plan, or into a personal RRSP outside of the group plan. I don't think how it affects your take-home pay is terribly relevant. What is relevant is that you're saving aggressively for your retirement. Well done.