Registered Retirement Savings Plan

What is an RRSP?

A Registered Retirement Savings Plan is a government-approved account created to help Canadians plan for retirement and invest their money in a tax-efficient way. RRSP contributions are tax deductible, which means the contributions you make will lower your annual income and reduce the amount of tax you pay at the end of the year.

There are limits to how much you can contribute to your RRSP each year. You are eligible to contribute the lesser of:

  • 18% of your earned income in the previous year, or

  • The maximum contribution amount determined by the Canada Revenue Agency (CRA). For 2021 the deduction limit is $27,830.

In addition, any unused contribution room from previous years can be carried forward.

Benefits of an RRSP

The benefits of an RRSP stretch beyond securing a comfortable retirement plan.

  • You receive an immediate tax deduction because your contributions lower your taxable income, which lowers the amount of tax you pay – depending on your earnings, this could even knock you into a lower tax bracket!

  • Your money grows tax-free, including capital gains and dividends or interest income, as long as it remains in your RRSP.

  • You are deferring tax on contributions until your marginal tax rate is lower. The idea of an RRSP is that you will begin withdrawing funds once you’ve reached retirement, likely using this as your main source of income.

Featured RRSP Investment Product

Market-Linked GIC

Take advantage of our exclusive Market-Linked GIC, available for a limited time. The funds we are offering feature a number of trailblazing companies making strides in ethical investing.

  • Green Neighbourhoods: Allows you to take advantage of the yield potential of environmentally conscious companies, including some in the renewable energy field.

  • Women’s Impact: Offers the potential return of companies from diverse economic sectors around the world, with boards of directors that are least 40% women.

Learn more about our Market-Linked GIC

Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc.