Registered Retirement Savings Plan (RRSP)
Need Insurance Support?
A Registered Retirement Savings Plan (RRSP) is a tax-advantaged savings account in Canada designed to help individuals save for retirement. Contributions to an RRSP are tax-deductible, meaning they reduce your taxable income for the year, and investments grow tax-deferred until withdrawn.
Why an RRSP is Important
1
Reduces Taxable Income
Contributions can significantly lower your annual taxable income, resulting in a lower tax bill or a bigger refund.
2
Tax-Deferred Growth
Your investments grow tax-free while inside the RRSP, allowing for faster compounding of wealth.
3
Retirement Planning
RRSPs encourage disciplined retirement saving, ensuring financial security when you stop working.
4
Income-Splitting Advantage
At retirement, withdrawals can be strategically planned (through RRIFs or annuities) to minimize taxes and split income with a spouse.
5
Special Programs
Home Buyers’ Plan (HBP): Withdraw up to $35,000 to buy your first home (repay over 15 years).
Lifelong Learning Plan (LLP): Withdraw up to $10,000/year (max $20,000) for education or training (repay over 10 years).
6
Long-Term Wealth Building
Because of the tax-deferred compounding, RRSPs can grow substantially over decades, helping you build a comfortable retirement fund.
Key Features of a RRSP
Tax Deductibility
Contributions are deductible from taxable income (up to annual limit).
Contribution Room
18% of previous year’s earned income, up to a CRA annual maximum ($31,560 for 2024), plus carry-forward of unused room.
Tax-Deferred Growth
Investment income (interest, dividends, capital gains) grows tax-free until withdrawal.
Wide Investment Choices
Stocks, bonds, mutual funds, ETFs, GICs, savings accounts, etc.
Special Programs
HBP and LLP allow tax-free withdrawals for specific goals.
Spousal RRSP
Allows income splitting and tax minimization between spouses.
Maturity
Must be converted to a RRIF, annuity, or withdrawn in cash by Dec 31 of the year you turn 71.
Transferability
RRSPs can be transferred to a spouse’s RRSP, RRIF, or eligible beneficiaries upon death (under certain conditions).
Frequently Asked Questions
Best Insurance Services
Term Life
Insurance
Term Life Insurance is a type of life insurance policy that provides coverage for a specific period of time
International Student Insurance
International Student Insurance is a health and medical insurance plan designed specifically for students coming to Canada
Travel Insurance
Travel Insurance for Canadians is a type of emergency medical and trip protection coverage designed for Canadian residents
Investment
We’re committed to protecting every Canadian every story, every journey. Investment, Life & Travel we’ve got you covered.
Get an Insurance
Quote to Get Started
- Comprehensive Life Insurance
- Family & Health Protection Plans
- Travel & Visitor Insurance
- Retirement & Investment Solutions
