Registered Retirement Savings Plan (RRSP)

What is a RRSP?

A Registered Retirement Savings Plan or RRSP is a wise choice for both short-term goals – such as saving for a down payment on a home, and for long-term planning, like saving for your retirement. A RRSP is a plan that can hold eligible investments within it, such as Guaranteed Interest Accounts (GIAs) or Segregated Funds.

The number one question that people have when it comes to long-term financial planning is whether they will have enough money to retire. Retirement looks different for every person, so it is important that you determine what you want your retirement to look like with the help of a Financial Representative.

A RRSP can help to boost your retirement income savings. Your contributions to a RRSP may be claimed as a deduction on your annual tax return. You only pay taxes when you withdraw from a RRSP – this is what makes it a great long-term investment. When you reach retirement age, your income tends to be lower than when you are working, so tax savings earned on your RRSP deposits will likely be greater than the taxes paid when you finally withdraw from your RRSP.

RRSPs may also provide unique opportunities to borrow from your savings to buy your first home or to assist you or your spouse with your own full-time training or education with programs like:

  • Home Buyers’ Plan (HBP)1
  • Lifelong Learning Plan (LLP)2

1 The Home Buyers’ Plan (HBP) is a program that allows you to withdraw up to $25,000 in a calendar year from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability.
2 The Lifelong Learning Plan (LLP) allows you to withdraw amounts from your registered retirement savings plan (RRSPs) to finance full-time training or education for you or your spouse or common-law partner.