don’t worry, be happy (about your retirement anyways)

Whether you’re dreaming of sitting on the dock at the cottage with your feet dangling in the water, travelling the world, or just spending time with the grand-kids, it’s never too late to start saving for your retirement plans with RRSP contributions.


A Registered Retirement Savings Plan (RRSP) is a government-approved plan through which you save money for your retirement years. It is the single biggest tax break available to Canadians. As a federally regulated program to encourage tax savings, RRSPs have special tax benefits that defer current income tax, potentially accelerating the accumulation of savings.


So how do they work? Well, first you invest in any number of RRSP eligible investment products. After your RRSP contribution has been processed, you will receive an official receipt. You may include the receipt with your tax return for the year or you may choose to carry it forward for use in future years. Your RRSP contributions, within limits, are tax-deductible and the income you earn is tax-sheltered meaning that it won’t be added to your taxable income until withdrawn.


Anyone with earned income subject to Canadian taxation, including non-residents, may contribute to an RRSP. Even if you are not in a taxable position, you should file a tax return to report your earned income and create RRSP deduction room.


RRSPs must be de-registered by the end of the year in which you turn 71. You can either take the money out, purchase an RRIF, or an annuity. And just like our other investment products, all your RRSP deposits are guaranteed without limit by the Deposit Guarantee Corporation of Manitoba.


For additional information on RRSPs for every life stage, we’ve created some helpful savings scenarios that offer up some additional details. Whether you are just starting your savings journey, have a solid plan in place for retirement savings and want to make sure you’re on the right path, or if you are doing the happy dance because retirement is just around the corner, we can help. Don’t miss out on your dream retirement! For even more information on the savings options available to you, please contact us.


PS. March 2, 2020 is the deadline for contributing to an RRSP for the 2019 tax year.


Please note: a $100 fee will be applied to any full or partial registered product transfer out.

have questions?

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