Starting a family and saving for retirement? Here’s how to do both
Saving for retirement with a young family can feel like one more thing on an already full plate. Between daycare costs, midnight feedings, and figuring out where you left your keys, retirement probably isn’t the first thing on your mind. And that’s okay.
But here’s some good news: you don’t have to choose between taking care of your family today and taking care of your future self. With a bit of planning, you can do both.
Why saving for retirement with a young family feels hard right now
Young families often feel squeezed from every direction. There’s rent or a mortgage, childcare, groceries that somehow cost more every week, and maybe a bit left over for additional expenses. Retirement savings can feel like a “someday” problem.
The truth is, someday sneaks up fast. And the earlier you start saving, even in small amounts, the more time your money has to grow. That’s the real advantage young parents have: time.
Let your group retirement plan do some heavy lifting
If your employer offers a group retirement plan, it’s one of the easiest ways to save without feeling the pinch.
Here’s why:
- Contributions come off your pay cheque automatically. No transferring money, no remembering, no willpower required.
- Many employers match a portion of what you put in. That’s essentially free money added to your retirement savings.
- Your contributions may lower your taxable income, which can help at tax time.
Even a small contribution, like 2 or 3 percent of your pay, adds up over the years, especially with employer matching in the mix.
Balancing big costs with long-term goals
You don’t need to pick one priority and ignore the rest. Here’s what makes saving for retirement with a young family feel more manageable:
- Start small and increase over time. If you get a raise, consider bumping up your contribution by 1 percent instead of spending all of it.
- Take advantage of any government benefits available to you, like the Canada Child Benefit, and put a portion toward savings if you can.
- Review your budget once a year. Life with kids changes fast. What worked last year might not fit anymore, and that’s normal.
- Talk to an advisor about your options. A quick conversation can help you see the full picture, from your group plan to RRSPs and TFSAs, and how they work together.
It doesn’t have to be all or nothing
Saving for retirement while raising a family isn’t about giving something up. It’s about making small, steady choices that add up over time. You don’t need a perfect plan. You just need a plan that fits your life right now, with room to grow as your family does.
If you’re not sure where to start, we’re happy to help you figure it out – that’s what we’re here for! Get in touch with one of our group retirement advisors to begin walking through your options.
