Secure Your Retirement with an RRSP
Maximize your savings, reduce your taxes, and plan confidently for your future.
What is an RRSP?
A Registered Retirement Savings Plan (RRSP) is a government-registered savings plan designed to help Canadians save for retirement efficiently while taking advantage of tax benefits. Contributions made to an RRSP are tax-deductible, which can reduce your taxable income for that year. Investments within an RRSP—such as stocks, bonds, GICs, mutual funds, or ETFs—grow tax-deferred, allowing your savings to compound over time more effectively than a regular savings account.
RRSPs are highly flexible, enabling tailored investments to match your risk tolerance, financial goals, and retirement timeline. Beyond retirement, RRSPs support life goals like buying your first home or furthering your education through programs such as the Home Buyers’ Plan (HBP) and Lifelong Learning Plan (LLP).
How RRSPs Work
RRSP contributions are capped by a maximum annual limit set by the Canadian government, calculated as 18% of the previous year’s earned income, or a yearly maximum (whichever is lower), plus any unused contribution room from previous years. Contributions reduce taxable income and investment income grows tax-deferred until withdrawal.
Investment Options
- Cash and Savings Accounts – secure, accessible funds
- Guaranteed Investment Certificates (GICs) – fixed return investments
- Mutual Funds – professionally managed pooled funds
- Government and Corporate Bonds – loans with fixed returns
- Stocks & ETFs – traded securities for growth and diversification
Contribution Limits
The annual contribution limit allows Canadians to strategically plan their retirement savings. Unused contribution room can be carried forward indefinitely to maximize tax benefits in future years.
Eligibility & Timing
There’s no minimum age to open an RRSP, but most financial institutions require legal age. Contributions can continue until December 31 of the year you turn 71. Early contributions benefit from tax-deferred compounding, significantly increasing retirement savings over time.
Key Benefits of an RRSP
- Tax-Deferred Growth: Investments grow tax-free until withdrawal.
- Tax Deductions: Contributions reduce taxable income annually.
- Carry Forward Unused Contributions: Optimize deductions in future high-income years.
- Spousal RRSPs: Income splitting to reduce household taxes.
- HBP & LLP: Access funds for first home or education without immediate taxes.
Withdrawals & Contribution Deadlines
RRSP withdrawals are taxed as income in the year of withdrawal and do not restore contribution room. RRSPs must convert to a RRIF or annuity by December 31 of the year you turn 71. The 2024 RRSP contribution deadline is March 1, 2025, allowing you to maximize deductions for the 2024 tax year.
Secure Your Retirement Today
Start planning for the future with an RRSP that fits your goals. Speak with our experts to understand your contribution options, maximize tax benefits, and grow your retirement savings with confidence.
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