We’re living longer—here are two ways to boost retirement savings and income + MORE Jan 18th

How to go about securing the best Retirement Plan in Canada.
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Should you withdraw from non-registered or TFSA investments in retirement? Mar 8th

Ask MoneySense I have stocks in my TFSA as well as some that are non-registered. I am at the point in my life (retired) now that I’d like to begin selling them and using the money. Do I sell from the TFSA account or just from the non-registered portfolio?—Catherine TFSA versus non-registered.... More »

Tax implications of making transfers between registered accounts + MORE Dec 21st

Ask MoneySense I had a locked-in pension, which I converted to a life income fund (LIF). I also took advantage of the ability to unlock up to 50% of the LIF within 60 days and put $120,000 into an RRSP. I did not receive any funds—so I was shocked when I received a T4RIF for $120,000, which means .... More »
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Piper makes a good buck as a lawyer but still has piles of school debt. Is her dream of owning a downtown Toronto condo realistic? + MORE Jan 25th

Financial adviser Jason Heath says Piper needs to get her debt and expenses under control before even thinking about home ownership and retirement.... More »
 retirement savings

How to start saving for retirement at 45 + MORE Mar 14th

Saving for retirement at age 45 means you’ll have a 20-year runway toward a traditional age 65 retirement. But what’s your starting point? The National Bank of Canada suggests that by age 40 you should have 2.1 times your annual income saved for retirement, while the U.S.-based firm Fidelity rec.... More »
 retirement savings

How much money do you need to retire in Canada? Is it really $1.7 million?  + MORE Mar 1st

Retired Money highlights Canadians think they need $1.7 million to retire, according to a BMO pollHow to save $1.7 million in RRSPsOther factors for determining how much you need to save for retirement If you’re just starting out on the long road to saving for retirement, you may have heard ab.... More »
Maybe you’re taking your first steps towards saving for retirement. Or maybe you’re in the home stretch. Either way, you will likely be using a registered retirement savings plan (RRSP). This Canadian tax-sheltered savings account is more than six decades old, and it has formed the backbone of retirement planning for most Canadians since the ’80s, when employer-sponsored pension plans began their decline.

Even if you’re familiar with RRSPs, there may be nuances worth exploring here. And sometimes there are new developments that reshape traditional retirement planning. Most important today is the increase in life expectancy over the past generation. That’s great news, but it also presents a challenge: Investors may need to make their money last even longer in retirement.

Fortunately, the investing world also has fresh ideas and financial products that should rise to the occasion.

RRSPs and tax considerations

RRSPs are best known for their tax deferral. Investments grow tax-deferred inside the account and are only subject to income tax when they are withdrawn…

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The year 2022 was the one when inflation morphed from a minor concern to a major worry for investors, especially those hoping to retire sometime in the not-too-distant future. While central banks are well into their programs to curb inflation through periodic rises in interest rates, it could take the better part of 2023 or beyond before inflation returns to the 2% annual target with which most governments are comfortable. The Bank of Canada (BoC) has had a 2% inflation guideline since 1995.

How Canadian investors are responding to inflation fears

Not surprisingly, inflation is of particular concern to retirees and those hoping to retire soon. A recent Leger/Questrade poll, entitled the 2023 RRSP Omni report, found that while 87% of Canadians are worried about rising prices, many are still looking to invest. In fact, 73% of registered retirement savings plan (RRSP) owners plan to contribute this year, and so do 79% of those with tax-free savings accounts (TFSAs). The confidence in investing is surprising despite the fact Canadians are fretting over how inflation will impact the value of their RRSPs (69%) and TFSAs (64%)…

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Putting money into a registered retirement savings plan (RRSP) is one of the best ways to save for retirement. Some people choose to contribute a lump sum to their RRSP at the beginning of the year (or right ahead of the tax-filing deadline), while others prefer to contribute regularly through automatic withdrawals or deposits. Whichever option you choose, be aware that there’s a limit to how much you can add to your RRSP in any given year. The RRSP contribution room calculator above will get you the numbers you need, but keep reading for a better understanding of RRSPs.

What’s an RRSP?

A registered retirement savings plan, or an RRSP, is a savings account that you open at a bank or other financial institution. It is registered by the federal government of Canada for tax savings, and you can contribute to the account up to an annual maximum amount. 

Compare the best RRSPs in Canada
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What’s special about RRSPs?

Contributions to RRSPs are deductible, meaning they can be used to reduce your taxes…

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