What should be the most important retirement savings strategy for younger people?

Question

Quizplus · Accepted Answer

A balanced approach between TFSAs and RRSPs is the best retirement savings strategy for younger people. TFSAs allow for tax-free growth and withdrawals, making them ideal for short-term goals, emergencies or expenses. RRSPs offer tax-deferred growth and a tax deduction today, making them ideal for long-term savings and reducing taxes in high-income years. By balancing both accounts, individuals can optimize their tax benefits and maximize their retirement savings. Defined-benefit pension plans are increasingly rare, and maximizing pension plans may not be an option for all individuals due to employment or financial constraints.

What Should Be the Most Important Retirement Savings Strategy for Younger