Countdown to Retirement – RRSP are a Bright Idea!

February 22, 2017Living in Retirement

According to CBC News and an RBC survey, 1 in 6 Canadians aged 55 or older hasn’t started retirement saving yet. If you are hoping to retire soon it is time to start planning and contributing as much as possible to your RRSP. The deadline is right around the corner to make 2016 tax year RRSP contributions.

RRSP deadline tips to keep in mind:

  • March 1, 2017 at 11:59 p.m. is the deadline for 2016 tax year contributing to investments in your RRSP.
  • The maximum contribution room for 2016 will depend on your earned income in 2015 (minus your pension adjustment if applicable).  You will be able to find your personal maximum allowable contribution on your most recent notice of assessment from the Canada Revenue Agency (on line (A) of the RRSP Deduction Limit Statement).
  • You can carry forward unused contribution room from prior years.
  • You can fill your unused contribution room  in a single year or over a number of years until the end of the year in which you reach age 71 (or the end of the year your spouse/common-law partner turns 71 if he or she is younger).

The key is to understand your budget, taxation status and your financial planning goals. If one-time contributions into your RRSP are not easy to save for, consider setting up a monthly contribution. The monthly contributions can be adjusted at any time.

It’s never too late to start building a plan that will give you peace of mind as you look ahead to retirement.  For customized financial planning strategies contact your FaithLife Financial Representative who will help you to be wise with your money so you can feel confident about your finances.