Maximizing your retirement savings
Once you reach retirement, you have less time to grow your savings, so it's a good idea to start saving early so you can benefit from:
- Compounding — The process in which income is earned on your principal savings as well as on income that has previously been earned.
- Dollar-cost averaging1 — The practice of investing a fixed amount at regular intervals, regardless of share price. This helps average out your price paid per share and helps avoid purchasing all shares at a high point of the financial market.
Besides starting early, there are other methods to ensure you are making the most of the saving opportunities available to you.
1 Dollar cost averaging does not assure a profit and does not protect against loss in declining markets. Investors should consider their financial ability to continue a dollar cost averaging plan during periods of fluctuating price levels.
