RRSPs after 60: Should they still be a priority?

Paying down debt, contributing to TFSA may be more beneficial.

Matthew Elder 22 May, 2015 | 5:00PM

Much is made of the rewards of taking full advantage of registered retirement savings plans during working years. Indeed, it pays to contribute as much as possible -- ideally, to the maximum extent allowed -- to an RRSP each year. And the younger you are when you set up a plan, the better.

But what about people in their 60s, with retirement on the minds of many and RRSPs' end date only a few years away? Does it remain a priority to make full use of an RRSP, or is it time to consider alternative places for your savings?

Given today's generally longer life expectancy, 60-something investors still need to save and invest. "Most of us can expect to live to our mid-80s or longer, so your money needs to grow," says Robert Kerr, chairman of Kerr Financial Group Inc. in Montreal. "It should be invested for moderate risk and growth, and the longer time horizon and good diversification will reduce the risks of losses in the market."

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Matthew Elder

Matthew Elder