RRSP Season is upon us! Are you ready? I’ll be honest, I wasn’t exactly sure what RRSP’s were until recently and thankfully my wonderful friends at Ratesupermarket.ca made it easy to learn about RRSP’s with their handy, What Is an RRSP page.
What is an RRSP exactly? Well in a few words —
- A Registered Retirement Savings Plan (RRSP) is a savings and investment plan that sets aside the funds you’ll need after you retire from the workforce and are no longer earning a regular income.
- The idea behind RRSPs is that any funds placed within them stay in the plan until you turn 71. You’ll then receive them either as a lump withdrawal or in increments, similar to the paycheque you received when you were working.
- The amount you can contribute, also referred to as your deduction limit, depends on how much you earn; generally, you can put as much as 18 percent of your income from the previous year.
RRSPs are a great way to prepare for retirement. However, if you’re not quite ready to set up an RRSP and are just looking for ways to save to put money aside for retirement, it may be worth doing some research into finding ways to help you plan for retirement. Once in retirement, you could look into equity release – this guide to equity release will provide more information. This is a way of getting some money in retirement if you haven’t got massive savings. No one said this aspect of life was going to be easy, but it is not impossible to find the best ways for you to sort out this aspect in life. This is something the majority of us will have to think about sooner rather than later. So, it was worth doing some research to see what you can find out. For example, if you are eligible for social security benefits and what types of Social Security retirement benefits are you entitled to.
However, if you are someone who’s interested in an RRSP, you can get more information from: How to Start an RRSP.
The RRSP contribution deadline is fast approaching, with a deadline of February 29th. Now is the time to get everything ready.
What I’ve recently just learned about RRSP’s:
- There is no limit! You can have as many RRSP accounts as you’d like.
- RRSPs can be used to put you in a lower tax bracket
- You can contribute to an RRSP from any time after age 18 until you turn 71 (December 31st of that year)
- RRSPs can hold many types of investments including GICs, Bonds, Mutual Funds, Income Trusts and more!
RateSupermarket.ca has put together this interesting video about Canadian Retirement I found extremely informative; Are YOU saving for retirement yet?
Are Canadians Retirement Ready?
Everyone who signs up for the program will be entered to win a $2,016 cash prize. Now is the time to get signed up, and get going! Ends Feb 29th, and open to residents of Canada excluding Quebec.
I’ve never really looked into RRSP’s before, but I think it’s a great idea for someone like myself who is now 30 (31 in July, ah!) to think about. Six Time Mommy, is my income and I am my own boss. I have no insurance, I have no bonuses and I definitely don’t have a pension so for me to even think about the years to come, especially once I’ve hit over 50 (can I still blog then?) I’d like to know I will be okay, and I have some sort of plan for the future in place.
As a mother to six, this is something I have to seriously start to consider and I’ve never been more interested in RRSP than I am right now. I’ve found all this information extremely helpful and I think you will too. Especially if your future is important, and something you’d like to consider preparing for!
Secure YOUR Retirement Savings With the Best RRSP GICs in Canada! What are you waiting for?
Are you saving for retirement? Are you ready to start? Are RRSPs something you’d consider?
Disclosure: This post was Sponsored by RateSupermarket.ca. However all opinions are mine and 100% true.