The cost of delay
Putting off an RRSP contribution by even a few years can really take a bite out of your future RRSP balance. Check out the cost of delay below in this table.
| The cost of delay | ||||
|---|---|---|---|---|
| $5000 contribution made: | Value at age 65 | Cost of one year delay* | Cost of five year delay* | Cost of ten year delay* |
| at age 25 | $51,429 | $2,911 | $12,998 | $22,711 |
| at age 30 | $38,431 | $2,176 | $9,713 | $16,972 |
| at age 35 | $28,718 | $1,626 | $7,259 | $12,682 |
| at age 40 | $21,460 | $1,215 | $5,424 | $9,477 |
| at age 45 | $16,036 | $908 | $4,053 | $7,082 |
| at age 50 | $11,983 | $678 | $3,029 | $5,292 |
| at age 55 | $8,954 | $507 | $2,263 | n/a |
| at age 60 | $6,691 | $379 | n/a | n/a |
| Assumes retirement age of 65 and 6% annual compound return | ||||
* Cost is the decrease in the future value of your RRSP as a result of delaying your contribution by the time indicated.