Inflation putting RRSP and TFSA contributions on the chopping block

In many cases, cash-strapped households have no alternative. But those able to choose whether to trim their RRSP and TFSA contributions could be denying themselves the inflation-fighting power of compound interest.

As our dollars erode, it found that most of us are cutting back on spending and delaying major purchases. It also revealed 19 per cent of respondents are deferring or not investing in their registered retirement savings plans (RRSP) and tax-free savings accounts (TFSA).  

In many cases, cash-strapped households have no alternative. But those able to choose whether to trim their RRSP and TFSA contributions could be denying themselves the inflation-fighting power of compound interest.

How compounding works