A Registered Retirement Savings Plan (RRSP) is a government-registered investment account that helps Canadians save for retirement. As a Canadian, you can contribute to an RRSP for yourself, your spouse or common-law partner, allowing your investments to grow tax-deferred until withdrawal.
RRSP contributions are tax-deductible, reducing your annual taxable income and helping you save on your current tax bill while saving for your future. Investment income earned within the plan—such as interest, dividends, or capital gains—is not taxed until you withdraw the funds, typically during retirement when your income (and tax rate) may be lower.
We can help you determine how to best use RRSPs to maximize savings, reduce tax obligations and plan for your future.
The Canada Revenue Agency generally calculates your RRSP deduction limit as follows:
The lesser of
18% of your earned income in the previous year, and
the annual RRSP limit
Minus
your pension adjustments (PA)
your past service pension adjustments (PSPA)
Plus
your pension adjustment reversals (PAR), and
your unused RRSP, PRPP, or SPP contributions at the end of the previous year
The 2025 annual RRSP limit of $32,490
If you want to calculate your RRSP deduction limit yourself, see chart 3 of Guide T4040, RRSPs and Other Registered Plans for Retirement.
the “Available contribution room for 2025” amount found on the RRSP Deduction Limit Statement, on your latest notice of assessment or notice of reassessment
Form T1028 – Your RRSP Information for 2024: The Canada Revenue Agency (CRA) may send you this form if there have been any changes to your RRSP deduction limit since your last tax assessment.
A Registered Education Savings Plan (RESP) is a government-registered savings plan that helps parents and families in Canada save for a child’s post-secondary education. Funds in RESPs can be used for tuition and related expenses at Canadian universities, colleges or other designated educational institutions, and approved universities and colleges outside of Canada. RESPs can also be used for certified training programs approved by the Employment and Social Development Canada (ESDC).
Anyone—parents, grandparents, other family members and friends—can open an RESP for a child. RESPs can be opened by one person, or jointly by spouses or common-law partners. RESPs can also be opened by child-care agencies. While you can open a plan for a child, you can also name yourself or another adult as the beneficiary.
There are three main types of RESPs – Family Plan, Individual (non-family) Plan, and Group Plan. It is very important to choose the right RESP.
We can help guide you, so you can confidently choose the right RESP type for your family
Get a Social Insurance Number (SIN) for your child, and get one for yourself if you do not already have one. There is no fee; however, certain documents, such as birth certificates, are required.
Choose an RESP provider that best suits your needs. Most financial institutions (such as banks and credit unions), as well as certified financial planners and group plan dealers provide RESPs.
INDIVIDUAL (non family) PLAN RESP is ideal if you are not related to the child you are saving for. In this type of plan, only one beneficiary is named in the RESP, and the beneficiary does not have to be related to you.
A GROUP PLAN RESP is for one child only, and the child does not have to be related to you. In this type of plan, your savings are combined with those of other people with children of the same age. How much each child gets depends on how much money is in the group account, and on the number of students of the same age who are in school that year. These plans are usually provided by scholarship-plan dealers rather than typical banks, and will usually invest the money in low-risk investments.
The Tax-Free Savings Account (TFSA) program is popular with Canadians aged 18 or older, as a way to save money throughout their lifetime. While contributions to a TFSA are not deductible for income tax purposes, any amount contributed as well as any income earned including interest, dividends or capital gains is generally tax-free, even when it is withdrawn. To maximize your retirement savings, we recommend regular contribution and usage of the TFSA in conjunction with a diversified retirement portfolio strategy. Our team can help you determine the most effective way to incorporate the TFSA into your retirement plan.
Your “TFSA contribution room” is the maximum amount that you can contribute to your TFSA.
Since 2009, the TFSA contribution room has accumulated every year, for anyone who is 18 years of age or older and a resident of Canada at any point during the calendar year.
For Canadian investors and savers, the annual increase in the contribution limit for Tax-Free Savings Accounts (TFSA) is some of the best news to come each year. The current limit means someone who has never contributed to a TFSA and was old enough to have one since its inception will have a cumulative contribution room of $102,000 as of Jan 1, 2025.
Be aware of the rules and restrictions for tax-free savings account (TFSA) contributions, withdrawals and transfers.
Only contributions made under a valid social insurance number are accepted as TFSA contributions.
You can contribute up to your TFSA contribution room. A tax applies to all contributions exceeding your TFSA contribution room.
Withdrawals will be added to your TFSA contribution room at the beginning of the following year.
You can replace the amount of the withdrawal in the same year only if you have available TFSA contribution room
Direct transfers must be completed by your financial institution
Part of retirement planning involves estate planning– making or updating your will, and naming your estate representative. Our team is here to help guide you through these important decisions– offering transparency and openness in our discussions with you.
More information about Estate Planning and Wills courtesy of the Government of Canada >
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