RETIREMENT
RRSPs: Your Ticket to the Retirement of Your Dreams
Each day that goes by we all creep a little closer to retirement, and no matter how far away it may seem now, you’re certain to get there faster than you think! You deserve to feel good about your retirement savings goals, and a Registered Retirement Savings Plan (RRSP) can help get you there. Introduced in 1957 to help promote savings by employees and self-employed people, the Government’s RRSP program is a helpful way to save big and keep your future in focus.
Why an RRSP?
There are a number of saving options available – such as GICs and TFSAs – but what sets RRSPs apart is that they are a great way to defer income tax. All qualifying contributions to RRSPs are deductible from income, reducing the income tax payable for the year in which the contributions are claimed. A holder can withdraw funds from an RRSP at any age, and amounts withdrawn must be included in the taxable income of that year. Before the end of the year the account holder turns 71, an RRSP must be either cashed out or transferred into a Registered Retirement Income Fund (RRIF).
Who can, and who should, contribute?
Saving for the future is a bright idea for everyone – all working-age adults should consider an RRSP to get rolling on their retirement savings journey. As is the case with any savings account, the earlier you can start, the better! Any resident of Canada who files a tax return for the year prior to the year of the contribution can contribute to an RRSP (up until December 31 of the year in which the holder turns 71). The RRSP contribution limits are set by the Government, and you can contribute for the previous year up to the 60th day of the following year. An RRSP is a smart way to top up your savings and assist you in reaching your retirement goals.
Key Insights to Get You Started
Getting started is simpler than you may think – and our helpful staff at Tandia are here to make sure you have the knowledge to save for your future with confidence. If you wish to learn more about RRSPs or just want to get started, there is no time like the present – reach out to your Tandia advisor or local branch and find out how we can help. Your future self will thank you!
