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How Canadian investors are responding to inflation fears
Not surprisingly, inflation is of particular concern to retirees and those hoping to retire soon. A recent Leger/Questrade poll, entitled the 2023 RRSP Omni report, found that while 87% of Canadians are worried about rising prices, many are still looking to invest. In fact, 73% of registered retirement savings plan (RRSP) owners plan to contribute this year, and so do 79% of those with tax-free savings accounts (TFSAs). The confidence in investing is surprising despite the fact Canadians are fretting over how inflation will impact the value of their RRSPs (69%) and TFSAs (64%)…
Even if you’re familiar with RRSPs, there may be nuances worth exploring here. And sometimes there are new developments that reshape traditional retirement planning. Most important today is the increase in life expectancy over the past generation. That’s great news, but it also presents a challenge: Investors may need to make their money last even longer in retirement.
Fortunately, the investing world also has fresh ideas and financial products that should rise to the occasion.
RRSPs and tax considerations
RRSPs are best known for their tax deferral. Investments grow tax-deferred inside the account and are only subject to income tax when they are withdrawn…