An RRSP is one of Canada’s most powerful tools for building long-term financial security. It allows you to save for retirement while reducing your taxable income — and the earlier you start, the more you benefit from compound growth.
Key Benefits
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Tax Deductible Contributions
Every dollar you contribute reduces your taxable income for the year — potentially leading to a tax refund. -
Tax-Deferred Growth
Investments inside your RRSP grow tax-free until you withdraw them, typically in retirement when your tax rate may be lower. -
Wide Investment Options
You can hold mutual funds, ETFs, GICs, bonds, stocks, and more — tailored to your risk tolerance and goals. -
Spousal RRSPs
Allows income splitting in retirement, reducing overall household tax burden. -
Home Buyers’ Plan (HBP)
Withdraw up to $35,000 tax-free to buy your first home, with repayment over 15 years. -
Lifelong Learning Plan (LLP)
Withdraw up to $20,000 for education or training, with repayment over 10 years.
Contribution Rules
- Annual Limit (2025): 18% of earned income, up to $31,560.
- Deadline: Contributions for the 2025 tax year must be made by March 2, 2026.
- Carry-Forward: Unused contribution room rolls forward indefinitely.
- Over-Contribution Penalty: 1% per month on excess over $2,000.
Who Should Use an RRSP?
- Employees and professionals with taxable income.
- Self-employed individuals seeking tax relief and retirement savings.
- Couples planning for income splitting.
- Home buyers and lifelong learners using RRSP-linked programs.
Advisor Tip from Guriqbal Singh
"An RRSP isn’t just a savings account — it’s a strategic tool for tax planning, wealth building, and retirement security. I help clients choose the right mix of investments and contribution strategies based on their income, goals, and life stage."
Ready to Build Your Retirement Plan?
Let’s talk about how RRSPs fit into your financial strategy.
Book a consultation today with O Canada Insurance Inc.