Registered Retirement Saving Plan (RRSP)

Registered Retirement Saving Plan, RRSP is a tax-sheltered, personal investment plan registered with the Canadian Federal government to help you secure your future after you retire. The contributions made in the RRSP reduce your tax payable. You must remember that any withdrawal from RRSP will be included in to your income and tax must be paid on it.

Any Canadian below 72 years of age is eligible to save under the RRSP plan, whether you are employed or self-employed or have a company pension plan. RRSP also helps you reduce your tax burden if you are married and one spouse earns less than the other.

Benefits

You can use your RRSP funds to finance your first home or education needs. In financial emergencies such as employment termination, career change or maternity leave, RRSP eases out your burdens. There are some exceptions to the rules for income inclusion under first home buyers or their education funding.

RRSP includes a variety of investments:

• Guaranteed investment certificates (GICs)
• Equities
• Mutual funds
• Segregated Funds
• Bonds
• Savings deposits
• Treasury bills