What is a RRSP?

A Registered Retirement Savings Plan (RRSP) is a kind of savings program that helps Canadians plan for their future. This special kind of investment account is designed to help you save for retirement. It’s registered with the Government of Canada, so your contributions are tax deductible and can be used to reduce your annual income tax bill. 

Unless you have a great pension, you probably need an RRSP. How do I begin saving for retirement? You can contribute funds to an RRSP for yourself and for your spouse.

There are limits to how much you can contribute to your RRSP each year. Your contribution room is set at 18% of the income you reported on your last tax return. Other limits apply, so you need to check your most recent Notice of Assessment from Canada Revenue Agency.

You can hold a wide range of investments within an RRSP, including stocks, Exchange Traded Funds (ETFs), mutual funds, bonds, Guaranteed Investment Certificates (GICs), and cash. You might be wondering why you should put those investments inside an RRSP. Well, investing in an RRSP helps you save because every dollar you contribute reduces your income tax bill for the year. Plus, your investment earnings are not taxed as long as the funds remain inside your RRSP.

In order to be eligible for an RRSP deduction in a given tax year, you can make contributions anytime during that year, or up to 60 days into the following year. This year’s ‘RRSP deadline’ is March 1, 2022. But don’t wait, you’ll start earning interest right away and save some stress if you start investing as soon possible. Set up regular contributions and you don’t need to think about it all year!

It’s never too soon to start saving for retirement. Speak with a member of our Wealth and Investment Team today so we can help you make the most of the features designed into Canada’s retirement savings programs!  You can ask us anything!


*Mutual funds are offered through Qtrade Asset Management (a tradename of Credential Asset Management Inc). Mutual funds, other securities and securities related financial planning services are offered through Qtrade Advisor, a division of Credential Qtrade Securities Inc. 

Qtrade Asset Management, Qtrade Advisor and Northwest & Ethical Investments L.P. are all wholly owned subsidiaries of Aviso Wealth Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, cash balances, mutual funds and other securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated.

Paul Arsenault

Paul Arsenault, CFP®, PFP®, RIS, CKA®

Director, Wealth and Investment Branch Compliance Manager / Qtrade Asset Management Inc. Paul has a wealth of experience helping members achieve their goals as a CERTIFIED FINANCIAL PLANNER® professional. He coaches Kindred’s Financial Planning Team and acts as our compliance manager for Qtrade Asset Management Inc. In addition, Paul is passionate about sharing his knowledge around RDSPs with members and organizations.