If you are a professional musician, chances are you don’t have an employer who sponsors a pension plan or who matches contributions to an RRSP. In fact, only 35% of Canadians have an employer sponsored retirement plan, and only one-third of Canadians will have an adequate income when they retire.
Most Canadians generally rely on government pensions like the Canadian Pension Plan (CPP) or Old Age Security (OAS). According to recent Advocis studies, the average CPP pension pays only $1154.58 per month, and the average OAS pension pays $601.45. Even the two pensions combined only offer an average monthly income of $1756.03/month.
Joining a group RRSP is an affordable option for musicians and other self-employed individuals that offers flexible contribution schedules and can significantly impact the quality of life in your retirement. Even a monthly contribution of less than $100/month can make a measurable difference in your future security. And the sooner you begin to contribute, the more value your pension accumulates, even if you contribute over a shorter period of time.