Doing Business in Canada
There are many benefits to having an RRSP as part of your investment and retirement savings strategy:
Your annual contribution can be deducted from your gross income, reducing the amount of income tax you pay that year.
The income you earn is sheltered from tax, allowing it to grow faster. By the time you retire and withdraw funds, you will likely be in a lower tax bracket.
You can withdraw money from your RRSP to buy your first home or pay for your or your spouse’s education, without penalty, providing it’s repaid within the specified time.
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Direct Contributions? |
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Tax Deduction? |
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Withdrawal Rules: |
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The primary reason to contribute to an RRSP is to have another source of retirement income. When you contribute to your RRSP in your working years, you receive an immediate tax benefit as the contributions are tax deductible. Your retirement savings then grows tax-sheltered within the plan so your money grows faster. Then when you retire, you’ll have an income to draw on to supplement your other sources of income.
Any individual who is a Canadian resident, has earned income, and files an income tax return in Canada can contribute to an RRSP until December 31 of the year they turn 71 years old.
There are contribution limits on RRSPs. The exact amount you can contribute for the current year can be found on your most recent Notice of Assessment you received from the CRA. As a guideline, your allowable RRSP contribution for the current year is the lower of:
Maximum annual RRSP contribution limits for the last seven years:
Year |
Contribution limit |
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2013 | $23,820 |
2014 | $24,270 |
2015 | $24,930 |
2016 | $25,370 |
2017 | $26,010 |
2018 | $26,230 |
2019 | $26,500 |
2020 | $27,230 |
2021 | $27,830 |
2022 | $29,210 |
2023 | $30,780 |
Our Retirement Planner Calculator determines the amount of savings that you'll need to retire comfortably. By flagging any shortfalls or surpluses, the Calculator outlines the savings required to reach your financial goals for retirement.
These calculators are made available to you as tools for independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy. All examples are hypothetical and are for illustrative purposes only.
Talk to one of our representatives to learn how a WealthONE RRSP can hold a variety of investments, including:
Guaranteed Investment Certificate (GIC)
High Interest Savings deposits
A TFSA is a registered savings account you can use to save for a major purchase or a goal. Your earnings and withdrawals are tax-free, so your money grows faster!
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