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A Registered Retirement Savings Plan is a highly tax-effective way to save for your retirement, whether you set up your own plan or already contribute to a group plan or company pension fund.

With an RRSP, you can contribute up to 18% of your previous year’s income up to a set maximum, and 'top up' any unused allowance from previous years. Each year you receive a tax deduction for the contributions you’ve made, and that money you saved in taxes is then reinvested and earns a return for you, not the Canadian government. Over the years, your regular monthly contributions and tax savings earn a compound return providing a tax-effective savings pot for a secure retirement. This savings pot will supplement Canada Pension Plan (CPP), Old Age Security (OAS) and any employer sponsored retirement savings plan you might have.

A Registered Retirement Savings Plan:

  • Is open to contributions of up to 18% of your annual salary up to an annually set maximum
  • Is tax effective as contributions can reduce your income, and therefore your income tax bill!
  • Allows your savings to grow tax-free
  • Defers tax on contributions until you access the money
  • Can contain a variety investment
  • Can be used to fund your first home under the Home Buyers Plan (HBP)
  • Can be used for continuing education under the Lifelong Learning Plan (LLP)


Why choose a Registered Retirement Savings Plan

The Canadian federal government wants to encourage working Canadians to save for their retirement, so when you contribute to a RRSP, you are rewarded with several benefits.

The money you put into an RRSP effectively reduces your income by the amount of your contribution, so your income tax bill is lower as a result.

Tax due on the part of your income that you invest in an RRSP is also deferred, so you don't pay any income tax or capital gains tax on that money until you withdrawn it. Meanwhile, your money is growing tax-free, each year.

You can also withdraw money without penalty to fund you first home (an HBP) or to fund education for yourself or your partner (an LLP), although there are limits on how much you can withdraw and money must be repaid within a given period before tax becomes due.

Your RRSP in Retirement and Later Life

Once you turn 71, you must transfer your RRSP into a RRIF (Registered Retirement Income Fund). You can contribute to your spouses' RRSP, and your RRSP can be transferred to your spouse on your death without penalty.

At Ian C Moyer, we have extensive experience in retirement funding and investments, so why not call us for a no-obligation talk through your retirement savings provision.

Contact Information


Phone: 1 519 485 5801

Toll Free: 1 800 565 5444

Fax: 1 519 425 1207

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