REGISTERED RETIREMENT SAVINGS PLAN
Set yourself up for success with a Registered Retirement Savings Plan (RRSP) and defer taxes on income earned off the investment.
Speak with usWhy Invest in an RRSP
Contributions you make to your RRSP help you save for retirement by accumulating savings on a tax-deferred basis.
- Income earned within an RRSP is not taxed until withdrawal.
- Plan contributions provide a deduction against earned income for taxation purposes.
- With Canada’s tiered tax rates, RRSPs can help you reduce taxable income during your highest earning years (while you’re employed) and pay tax when you are withdrawing them in your lowest earning years (retirement).
- Funds are eligible for Canadian Government programs that can help you buy your first home or further your education.
- Your investment income can include savings options, interest, dividends and capital gains.
- You can create spousal plans that allow the higher earning spouse to contribute to the name of the lower earning spouse and still obtain the deduction from taxable income. At withdrawal, the funds are taxed at the lower income rate.
Who is it for?
Any Canadian resident who is aged 71 or under, with a valid Social Insurance Number (SIN). You must have completed a Canadian Tax Return in the previous year, and have an income, to generate contribution room.
Talk to a Financial Planner today about this investment and develop an investment strategy to best meet your financial fitness goals.
Frequently Asked Questions
Legislation requires that your RRSP contracts mature before the end of the year you become 71. You will need to review your retirement objectives and choose options that will support your goals. Three primary options are:
- Registered Retirement Income Funds (RRIF)
A RRIF is an investment option for Registered Retirement Savings Plan (RRSP) holders to start collecting retirement income.
• Life Annuities
A life annuity provides you with the guarantee you’ll receive a series of income payments at fixed intervals for life. If you live past 82, you will still receive your payments as long as you live.
• Term Certain Annuities
A term-certain annuity provides guaranteed income payments for a fixed period of time. If the member passes away before the end of the term, their beneficiary or estate will continue to receive the regular payments. The beneficiary or estate may also receive the balance of the regular payments as a lump-sum.
Click here to learn more about Annuities and the different options from the Government of Canada.
There are limits to how much you can contribute each year to your RRSP or to your spouse’s RRSP. Your allowable contribution room is the lower of:
- 18% of the earned income reported on your tax return for the previous year
- The maximum annual contribution limit for the year, which is set by the government
- The remaining limit after any employer-sponsored pension plan contribution
- You can carry forward unused RRSP contribution room since 1991.
To find out the exact amount you can contribute this year log in to your online account with Canada Revenue Agency.
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RRSP Basics
Take the next step in learning about RRSPs and discover more answers to frequently asked questions.
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