I'M DECADES FROM RETIREMENT. DO I REALLY NEED TO CONTRIBUTE TO MY RRSP?

If you're in your twenties and missed, or forgot, the deadline to contribute to your registered retirement savings plan (RRSP), don't fret: experts say retirement planning doesn't necessarily need to be at the top of your to-do list — for now.

"One of the biggest challenges I find when you're in your twenties, for example, is there are so many expenses that will come up long before retirement," says Jason Heath, managing director at Objective Financial Partners.

Heath says if you overcommit to saving for retirement in your twenties, you might need that cash sooner rather than later.

"Whether it's saving up for your education, a down payment on your home, a wedding or starting a family." Travelling or starting a rainy-day fund may also be a bigger priority than saving up for retirement in your twenties.

Malcolm Hamilton, a senior fellow with the CD Howe Institute, agrees with Heath. He explains that the last thing you'd want to do is put a bunch of money in retirement savings and then realize you can't afford to buy a house, for example, since your money is stashed in an

RRSP.

Pulling money out of your RRSP before retirement comes with several consequences, including losing your RRSP contribution room and having to pay withholding tax on the money you take out. If you need to withdraw $5,000 for post-secondary education, for example, you'd need to pay a 10 per cent withholding tax on those funds.

"Should someone who's 20 be saving for retirement? I'd say probably not," says Heath. But if you want to get a head start, Heath explains, you can set aside a very small amount towards retirement — whether it be one per cent or five per cent

of your salary.

That said, how much you decide to sock away toward retirement depends on personal circumstances and goals and whether you

have an employer matching contributions.

"I think people need to be careful about overcommitting to their retirement savings, but not saving for

the future also has drawbacks," explains Heath. "I suppose there's a fine balance and ideally you're always saving a little bit of money for the future."