Registered Retirement Savings Plan (RRSP)

This is a complicated question with a lot of different variables, and the biggest variable is you. The lifestyle you plan to lead in your retirement and the number of years you plan to be retired both play a big role in deciding how much you’ll need to save.  

Start by mapping out your expected expenses during retirement. Once you have an idea of how much you’ll need each year, you’ll have a guide for how much to save. Most people will need between 60% and 90% of their pre-retirement income. This income comes from a combination of Canada Pension Plan, Old Age Security, your employer pension, your RRSP, and any other savings you’ve accumulated.

Our Retirement Planner Calculator will help show you what you’ll need to retire. Call our Contact Centre at 1.866.863.6237 for additional help and advice.

The earlier you get started, the easier it’ll be to grow your savings and guarantee the retirement of your dreams. RRSPs are tax sheltered so the money you earn from them doesn’t get eaten away by taxes. Instead, your earnings are reinvested, or compounded, into your investment principal. The more time you have for your earnings to compound and grow, the less money you’ll need to contribute out of your own pocket. By starting early, you can actually contribute less.

The federal government has a cap on the amount of money you can contribute to your RRSP. It’s either 18% of what you made the previous year or a maximum amount identified by the government. Your contribution limit is whichever one of these is lower.

Your available contribution room can be found on your most recent notice of assessment – or reassessment – from the federal government. If you don’t use all your contribution room in a year, you can carry what’s leftover into the next year. This is how you can end up with lots of unused contribution room.

RRSPs are tax sheltered until you begin withdrawing money from the account. For most people this happens at retirement, but it can come earlier. No matter when your money is withdrawn from your RRSP, it’ll be taxed as income. You’ll probably earn less in retirement than when you were working so the tax rate burden for withdrawing from your RRSP will be lower – that’s the benefit of an RRSP.

Tax breaks are another big benefit. The RRSP contributions you claim on your tax return can mean big reductions to your income tax bill. Don’t forget – a tax refund is a great opportunity to put even more into your RRSP!  

Yes, you can contribute to your spouse or common-law partner’s RRSP. They’re the only person on whose behalf you can make contributions. When you contribute to your spouse’s RRSP, you get the tax benefits and your contribution counts against your contribution limits. Your spouse, of course, gets the contribution to their RRSP.

Real safe. Just like an Affinity savings account, the deposits you make into a RRSP are fully guaranteed by the Credit Union Deposit Guarantee Corporation, and that means your money isn’t going anywhere.

It’s easy! If you’re already a member, simply sign-on to your online banking and select the ‘Open New Products’ option. Follow the steps and you’ll be on your way to a brand new RRSP account in no time. Take the guesswork out of investing for you by setting up pre-authorized payments. You’ll be amazed on how quickly your investment grows without any work on your part!

Not a member? Drop by an advice centre any time during business hours and we’ll get you signed up for a membership and a RRSP account on the spot – no appointment needed. If you know when you’ll be coming by, contact us so we can really roll out the red carpet. If you’d rather skip the in-person visit, open an account online or on the phone through our Contact Centre from wherever you are! Call us at 1.866.863.6237 to open the account that best suits your needs.

Absolutely! Just log into your online banking and click on ‘Product Renewals’ on the left tool bar. If any of your products are up for renewal, they will appear here. Simply click the ‘Renew’ button and you’ll be given a renewal option of either ‘Payout to selected product’ or ‘Reinvest in new product’. Then click ‘Confirm’. Please note that some products may not be available online. You also have the option of renewing your investments in an advice centre or by calling the Contact Centre at 1.866.863.6237.