Registered Retirement Savings Plan
Registered Retirement Savings Plan
What is an RRSP?
An RRSP is a registered investment account that lets you save for your retirement by deferring taxes on your investment earnings. This means more of your money can stay invested and grow faster.
An RRSP also helps you lower your tax bill today, by allowing you to deduct RRSP contributions from your taxable income. By the time you retire you will likely be in a lower tax bracket, so withdrawals are taxed at a lower rate than today.
Here’s why nearly half of Canadians polled invest in an RRSP
- Use an RRSP to save for retirement while also saving for anything in a TFSA
- Contributions reduce your annual income, lowering your tax bill
- Taxes on your investment income are only paid when withdrawn
- You can borrow money from your RRSP to go to school2 or buy your first home3 without penalty, provided it is repaid within the required time
- You can make up for missed contribution room from previous years
Exclusive Benefits When You Invest With Us
Here’s how an RRSP can help you save for your first home:
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Advice When You Need It
Speak with an advisor in-person, by phone or over video – whether you’re investing $50 or $5,000.
How an RRSP Works
Here’s how an RRSP can help you save for a comfortable retirement:
An RRSP is a type of registered investment account, which means you can hold income-generating investments in it versus just cash (like a savings account).
The types of investments you can buy in your RRSP depend on where you open an account. You also want to consider your appetite for risk when choosing investments.
Unity Financial Services: Ideal if you want investment advice and access to an advisor – in-person, by phone or over video.
Offers mutual funds, Segregated funds, GICs, and savings deposits
Ideal if you want to make your own investment decisions
Offers stocks, options, Exchange-Traded Funds (ETFs), mutual funds, segregated funds, bonds and GICs
Ideal if you want to invest online and access Portfolio Advisors
Offers ETF portfolios designed for different investors (each portfolio holds a diverse mix of ETFs)
Since the investment income you earn in an RRSP (interest, dividends or capital gains) is not taxed until it’s withdrawn, it has the opportunity to grow faster than it would in a non-registered account.
Another way to save faster is by setting up regular (weekly, monthly, etc.) automatic contributions into your RRSP.
By December 31 of the year you turn 71, you must stop contributing to your RRSP and convert it to an income option such as a Registered Retirement Income Fund (RRIF) or annuity. A RRIF is like an extension of your RRSP, but instead of putting money in, you withdraw money to use throughout retirement.
You may be able to borrow from your RRSP for other purposes, as well.
Here are a few things to know:
- Withdrawals from your RRSP or RRIF are considered part of your taxable income.
- Withdrawals can affect your eligibility for government benefits, such as Old Age Security (OAS).
- Early withdrawals from your RRSP will raise your tax bill and have a withholding tax deducted upfront.
- The Home Buyers’ Plan may let you borrow up to $35,000 from your RRSP to buy your first home.
- The Lifelong Learning Plan may let you borrow up to $10,000 in a calendar year (to a maximum of $20,000) from your RRSP to cover training or education for yourself or your spouse.
Numbers to Know
$30,780
2023 RRSP deduction limit—or 18% of your earned income the previous year—whichever is lower
$35,000
Maximum amount you may be able to borrow from your RRSP to buy your first home
71
The age at which contributions stop and you need to convert your RRSP to an income option (like a RRIF)
Contribution Rules, Fees & More
RRSP Rules and Contributions
Get details on eligibility, contributions, withdrawals and other important information.
RRSP Fees
There are no fees to open an RRSP account with us. There can be some management fees depending on the solution you choose.
TFSA vs RRSP vs FHSA Account
Deciding between a TFSA and an RRSP or an FHSA account?
Need RRSP answers now?
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RRSP FAQs
Although you can take money from your RRSP before you retire, it’s not recommended because of the negative impact on your retirement plan— taxes on withdrawals are usually higher during your working years, plus you lose the contribution room used to make the original contribution. Withdrawals must be declared as income on your tax return at the end of the year and withholding tax will also be deducted from the amount you withdraw.
If you decide you would like to withdraw from your RRSP, you can do so in several ways:
Call us at our helpline.
Book an Online meeting. We recommend calling us to make an appointment.
There are no fees to open an RRSP account with us. There can be some management fees depending on the solution you choose.
Individual RRSP: The most common type of RRSP is a plan registered in your name. The investments held in the plan and all the tax benefits belong to you.
Spousal RRSP: When you contribute to a spousal RRSP, you still get the tax deduction but the plan is registered in your spouse’s name. (Your spouse’s contribution limit to his or her own plan is not affected.) It’s a great income-splitting option if one of you earns more than the other.
Locked-in RRSP: If you leave your employer before you retire, you may be offered the option to manage your vested pension funds. A Locked-in RRSP—Locked-in Retirement Account (LIRA) in some provinces—enables you do this.
Group RRSP: Some employers offer a Group RRSP, a collection of individual RRSPs for the company’s employees. As an employee, your RRSP contributions are taken from your pre-tax pay through payroll deductions, reducing your tax burden immediately.
At UFS, you can open an RRSP at:
Ideal if you want investment advice and access to an advisor—in-person, by phone or over video. Choose from mutual funds, segregated funds, GICs and savings deposits to hold in your RRSP.
Ideal if you want to trade and invest yourself using powerful online tools and resources. Choose from stocks, options, Exchange-Traded Funds (ETFs), mutual funds, bonds and GICs to hold in your RRSP.
Ideal if you want to invest without having to research a single investment.
Answer a few questions and we will match you to a professionally-built ETF portfolio.
The types of investments you can buy in your RRSP depend on where you open an account. You also want to consider your appetite for risk when choosing investments.
We Offer mutual funds, segregated funds, GICs and savings deposits. Ideal if you want investment advice and access to an advisor—in-person, by phone or over video.
We also offer stocks, options, Exchange-Traded Funds (ETFs), mutual funds, bonds and GICs through our affiliates. Ideal if you want to trade and invest yourself using powerful online tools and resources.
Furthermore, we offer ETF portfolios designed for different investors (each portfolio holds a diverse mix of ETFs). Ideal if you want to invest without having to research a single investment.
Although you can take money from your RRSP before you retire, it’s not recommended because of the negative impact on your retirement plan due to taxes on withdrawals. Withdrawals must be declared as income on your tax return at the end of the year and withholding tax will also be deducted from the amount you withdraw.
If you decide you would like to withdraw from your RRSP, we encourage you to first use our online booking tool to schedule a time to speak with an advisor by phone.
Yes, you can use your RRSP funds to cover an emergency situation. However, there is a tax consequence to doing so and an impact on your retirement plan. Any withdrawal is considered taxable income for the year and a withholding tax will be deducted upfront when you withdraw the funds.
Yes, you can set up automatic contributions to your RRSP using funds from your chequing account.
This amount varies per person. To find out the exact amount you can contribute for the current year, check your most recent Notice of Assessment from the CRA, which you can access through the “My Account” function on the CRA website.
As a guideline, your allowable RRSP contribution for the current year is the lower of:
18% of your earned income from the previous year
The maximum annual contribution limit for the tax year
The remaining limit after any company-sponsored pension plan contributions
Below are the maximum annual RRSP contribution limits from 2013-2021
| Year | Contribution Limit Per Year |
|---|---|
| 2013 | $23,820 |
| 2014 | $24,270 |
| 2015 | $24,930 |
| 2016 | $25,370 |
| 2017 | $26,010 |
| 2018 | $26,230 |
| 2019 | $26,500 |
| 2020 | $27,230 |
| 2021 | $27,830 |
| 2022 | $29,210 |
| 2023 | $30,780 |
Invest in an RRSP Today
Choose from the following options to open or contribute to an existing account:
Invest with us and Get Advice when You Need It
- Meet with an advisor by phone, online (video chat), or in person to help get you started or for access to personalized advice
- Hold GICs, mutual funds, segregated funds and savings deposits
- View and manage your investments Online or the Mobile app
Trade and Invest with Direct Investing with our Affiliates
- Call your own shots with our low-cost online trading and investing service
- Hold stocks, bonds, exchange-traded funds (ETFs) and more in your RRSP
- Make informed investment decisions using expert research and other resources like free real-time streaming quotes
Invest without Doing the Researching
- Our pros will pick, buy and manage the investments in your RRSP for you
- We match you to a low-cost portfolio of exchange-traded funds (ETFs) based on your answers to a few questions
- Track your progress online anytime and speak to a Portfolio Advisor if you have questions or need advice