Saving for Retirement as a Small Business Owner in BC | BoostBC

Saving for Retirement as a Small Business Owner in BC | BoostBC

With tax season upon us, it's time to start looking at our business numbers. Some of those numbers being our retirement plan. For small business owners, this can often look far different from the average Canadian.

When operating a small business, it is easy to get lost in the day to day expenses, but it is very important to plan for a secure future for yourself. Here are some of the best ways a business owner can set themselves up for success in retirement.

Maximize Your RRSP and TFSA Contributions. Consistency is key, and having an auto deposit set up into these accounts can ensure that you are setting aside the maximum amount each year. Without having a workplace pension plan to contribute to, these accounts are going to be the most reliable option for your future.

Pay Yourself Accordingly. If you are wanting to maximize your RRSP contributions, you want to ensure you are paying yourself a salary and not just earning through profits and dividends. Paying yourself a salary means you are contributing to the CPP(Canadian Pensions Plan), which increases the RRSP contribution room you have available.

Set up an IPP (Individual Pension Plan). Like an RRSP, IPP funds are tax-deductible, meaning you pay less tax now. The funds you contribute are invested and grow, tax-deferred, until retirement.

There are many ways you can set yourself up for the success you are working so hard for. It's important to also consider when you want to retire, and what lifestyle you want to live. Make sure you speak with a financial professional about your options, and what would work best for your business.

At BoostBC, we help you grow your business, it's up to you to grow your future.