Registered retirement savings plans (RRSP): The facts

MK1730E - Registered retirement

savings plans (RRSP): The facts

Everything you need to know about RRSPs

If you’re like most Canadians, chances are you could use some help when it comes to saving for your retirement. When used to its full advantage, an RRSP can be a powerful tool that can save you money on your annual tax return while helping your savings grow.

An RRSP is a retirement account that’s registered with the Canada Revenue Agency. Your contributions are deductible and can be used to reduce your tax. Income or growth earned in the plan is usually exempt from tax while the funds remain in it, so an RRSP acts like a tax shelter that gives you a powerful incentive to save money for your retirement years. RRSPs can work well if you contribute while you’re in a high tax bracket (while you’re working) and withdraw when you’re in a lower tax bracket (when you’re retired).

This booklet answers many questions to help Canadians make the most of their RRSPs:

  • What’s an RRSP and why should you contribute?
  • When and how much you should contribute to an RRSP?
  • How long can you contribute to an RRSP?
  • How do you determine your contribution limit, and what’s unused contribution room?
  • How can employer-based retirement savings plans affect RRSP contribution room?
  • What is a spousal RRSP?
  • What happens to your RRSP when you retire or die?
  • What are your contribution options?

… and much more!

Helping Canadians make informed decisions

Canadians work hard with dreams of enjoying their retirement years. An RRSP is a great tool to help them save for retirement on a registered (tax-sheltered) basis for many years, with an opportunity to accumulate a substantial sum of money. The potential tax savings during the working years and when making withdrawals during retirement make it a very attractive option to many Canadians.

You may have a lot of questions when it comes to saving for retirement and investing in an RRSP. Work with your advisor to determine your retirement goals and sources of future income, and see how an RRSP can help you achieve a comfortable, enjoyable retirement. Advisors, share this guide with clients to help answer any questions and get them on the path to tax-sheltered retirement savings.

Tax, Retirement & Estate Planning Services Team

Tax, Retirement & Estate Planning Services Team

Manulife Investment Management

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