The cost of delay

Putting off an RRSP contribution by even a few years can really take a bite out of your future RRSP balance.  Check out the cost of delay below in this table.

The cost of delay
$5000 contribution made: Value at age 65 Cost of one year delay* Cost of five year delay* Cost of ten year delay*
at age 25 $51,429 $2,911 $12,998 $22,711
at age 30 $38,431 $2,176 $9,713 $16,972
at age 35 $28,718 $1,626 $7,259 $12,682
at age 40 $21,460 $1,215 $5,424 $9,477
at age 45 $16,036 $908 $4,053 $7,082
at age 50 $11,983 $678 $3,029 $5,292
at age 55 $8,954 $507 $2,263 n/a
at age 60 $6,691 $379 n/a n/a
Assumes retirement age of 65 and 6% annual compound return

* Cost is the decrease in the future value of your RRSP as a result of delaying your contribution by the time indicated.