RRSP's main purpose is to increase savings for retirement
Retirement Planning Leamington - Pelee Lighthouse Financial

RRSP’s Planning | Peele Lighthouse Financial

What are RRSP’s ?

What You Should Know about Retirement Savings Plans

RRSP’s or Registered Retirement Savings Plan (RRSP Abbreviated) is a personal savings plan registered with the Canadian federal government allowing you to save for the future on a tax-sheltered basis.

RRSP’s main purpose is to increase savings for retirement by individuals looking to retire comfortably. RRSP’s must comply with the law and restrictions stipulated in the Canadian Income Tax Act. Laws determine the maximum contribution amounts, timing of contributions, the claiming of the contribution tax credit, the assets allowed, and the eventual conversion to an RRIF (Registered Retirement Income Fund) in retirement.

RRSP's Leamington, Pelee Lighthouse FinancialAn approved investment portfolio may include savings accounts, guaranteed investment certificates (GICs), bonds, mortgage loans, mutual funds, income trusts, stocks, foreign currency and other foreign funds.


RRSP’s have four positive benefits:

1. Tax deductions:

Contributions reduce your taxable income, lowering the tax you pay so you can keep more of your money when year-end tax time rolls around.

2. Tax-deferral:

Your investments grow un-harmed by taxes while still in the RRSP. You will only be taxed when making withdraws which should be discussed with your financial planner.

3. Income splitting:

Consider allocating future taxable income as evenly as possible between you and your spouse or common- law partner. This is commonly known as “income-splitting” and can be achieved through a spousal RRSP which allows the higher income earning spouse to contribute to an RRSP in their spouse’s name. This helps level out retirement income and lowers your income taxes both now and in onto retirement.

4. Use it for more than just retirement:

Canadian government programs can allow you to access funds in your RRSP to help you buy your first home or pursue further education.


Read more about Investments and Financial Planning Here.


Canadian RRSP’s Contribution Deadlines and Information:


Contact Pelee Lighthouse Life & Financial for high yield RRSP’s portfolios and management.