How to Adult, Episode 2: Don't ignore your workplace pension

Are you missing out on free money at work?

Morningstar Canada 15 March, 2017 | 5:00PM

 

 

Last time, we talked about how to set up your first budget. That included saving some money every month. But a personal savings account isn't the only way to save.

When you get your first job, it's important to make sure you know what kind of savings programs your company offers. For example, it's a good idea to contribute regularly to a group retirement plan. If you do, your employer will match your contributions. But if you don't, you are basically losing out on free money. Retirement may seem like a long way away, but you'll be glad you started early.

The money in these group plans gets invested into the market to generate even more money. You are able to decide how you want to invest your contributions. Now, doing this is up to you. But with the interest rate at 0.5%, it's probably not a good idea to let your money just sit there.

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Morningstar Canada

Morningstar Canada