How much do you put into RRSP's?

[Sylvanfan]

Not neccessarily a dollar figure, but recently I read some stats in regards to RRSP contributions. In St.Albert where I live the median household income is just over 115k per year. Which is peasantry for you Calgary folk, but a high number when compared to the rest of the country. More significant as a median figure and not an average meaning half of the households in the city are making more than that. Yet the average house hold contribution was 4278. Which amounts to less than 4% of that median number. My household contribution this year will be about 9% of our total income, which in my opinion is still far too low, it should be closer to 15-20% but is supposedly more than double the average put out in this artical. I would guess the median number in St.Albert is closer to 3500 per year or 3% as many big money earners will be maxing out. Granted more people may be using TFSA's too, if anyone has those stats I'd be interested to hear them.

I know it helps a lot that my employer matches 5%, and that a third of my yearly bonus is put into my RRSP. My wife was working in the pharmacy for a large national chain and they only matched to 1%. Maybe the pharmacists had a different plan, but that seemed pretty low to me. Are most Canadians putting less than 5% into saving for their future? If so, the doom and gloomers could be onto something. I've long resigned myself to the fact that my retirement will happen after 70, and be pretty much living out the string. If these numbers are accurate, others are going to be in tough shape.

[TurnedTheCorner]

Zero atm. I'm hoping I will drop dead on the job, so why save for retirement?

[blankall]

I try and max them out as best I can. This year I'll probably fall short, but I also put a serious contribution into my TFSA.

The tax right off and tax free earnings are too big of a draw for me. My priorities may change if interest rates rise. In that event, I'll probably focus more on paying off the mortgage.

[Phanuthier]

I max my 401k, Roth IRA and HSA (Canada equiv: RRSP, TFSA and of coarse Canada has free health care)... same with my girlfriend (we live together).

So that covers ~25%... my mortgage is another 25%... taxes 30%.... somehow I guess I'm making due with 20% thats left over. Its a lot tougher to make due, but I still get all the travel and weekend trips so far. Nothing left goes into my own personal investments though. My girlfriend just has retirement contributions and mortage, so she's putting back a higher % into savings.

[Sylvanfan]

Originally Posted by blankall

I try and max them out as best I can. This year I'll probably fall short, but I also put a serious contribution into my TFSA.b

The tax right off and tax free earnings are too big of a draw for me. My priorities may change if interest rates rise. In that event, I'll probably focus more on paying off the mortgage.

In my younger years it was easy to max out RRSP contributions...after the house, marriage, and kids....happy I put away something when I was young. I would advise younger people to save now, and make it a habit.

[DownhillGoat]

Currently, 7.5% of my annual is going into RRSPs. I'm more focused on getting rid of my mortgage. Once that drops a bit more I'll put more into my TFSA/RRSP.

[blankall]

Originally Posted by Sylvanfan

In my younger years it was easy to max out RRSP contributions...after the house, marriage, and kids....happy I put away something when I was young. I would advise younger people to save now, and make it a habit.

Fair enough. I should add, I don't have children, yet. I want to try and get 100k or so in there before my children get to "X" age and end up costing me too much.

[Dion]

I started putting money into an RRSP when I was 18 years old. Recently my contributions have been going into my TFSA.

[Sylvanfan]

Originally Posted by blankall

Fair enough. I should add, I don't have children, yet. I want to try and get 100k or so in there before my children get to "X" age and end up costing me too much.

Yeah, although in my case the wife part is where my ability to save seemed to wilt....Had to send her to school, inherited her car payment other regular expenses. No matter what I do...I can't seem to get her paid off. Hopefully there is some inheritance from her parents to make my efforts go rewarded one day!

[Locke]

Originally Posted by Dion

I started putting money into an RRSP when I was 18 years old. Recently my contributions have been going into my TFSA.

They had them back then? Did you get a receipt chiseled on granite?

[burn_this_city]

I've maxed out my TFSA, it's a much better deal than RRSPs.

[Deegee]

6% of my pay goes into my RPP and my company matches it, so 12% goes in. We also save in a liquid account.

We should be fine as long as keep on the path we're at as we are making extra payments on our Mortgage (that was taken at 30 years last year... on course for 20 more) leaving us debt free at 50, which was a huge goal for me.

We're better off then our parents ever were for sure, and plan to sell our house at 50 and move somewhere dirt cheap and play golf drawing on pensions early and working something fun during the cold season.

This is off my income alone which is nice.

My wife plans to return to work for additional income next year at which point we don't know what we'll do with that money, yet. It'll likely be 50% to savings and the rest on our vehicle loan to retire that quicker and then double up on mortgage payments.

[MoneyGuy]

I believe in RRSPs first for higher earners. We are fully contributed into our RRSPs and TFSAs.

[BlackArcher101]

I put 4.5% into an RRSP to take advantage of a company matching program, then what little I have left goes into TFSA. I frankly have no idea how I'll save enough for retirement and it scares me.

[TurnedTheCorner]

So many humblebrags ITT

[Rathji]

Not nearly enough.

[Sylvanfan]

Originally Posted by fotze

I just have so much leftover money after maxxing out my RRSP's that I wish there was another thing I could put it in. May as well just throw it out.

You sound like you need to buy an airline, or the Phoenix Coyotes.

[Clarkey]

I try to max out my contributions at $180k.

[Locke]

Originally Posted by Sylvanfan

You sound like you need to buy an airline, or the Phoenix Coyotes.

"The fastest way to become a millionaire? Be a billionaire and buy an airline."

- Richard Branson

[GP_Matt]

Originally Posted by MoneyGuy

I believe in RRSPs first for higher earners. We are fully contributed into our RRSPs and TFSAs.

Is there any maximum in your scenario. ie. at some point if you max out your RRSP's and invest wisely the income generated from your RRSP's can put you in the top tax bracket negating a lot of the savings from your tax breaks on the contribution side.

As an example, a person who maxes out their RRSP from 18 to 65 with an 8% return will have something in the range of $13 million in their RRSP. Once it is converted into an RRIF at 71 you are forced to withdrawal 7% or $900000 a year and pay a huge tax bill.

In that scenario, I think you would have been better off to put the money into a cash account to take advantage of the lower tax rate on dividends and capital gains.

The amount seems unrealistic, but I hear that a lot of the 1% hang out on this board.