You might benefit from a High Interest Savings RRSP – a simple registered savings account where you can start accumulating money. You can add money to it manually, or set up an automatic transfer (pay yourself first!) which is a great way to start the habit of saving for the future.
Not sure where to start?
There are many RRSP products to help you save for retirement based on different financial situations and preferences.
Here are some examples that will take the guesswork out for you.
What is an RRSP?
A Registered Retirement Savings Plan is a government-regulated account with special tax benefits to help you grow your retirement savings faster. It can hold a variety of assets, including cash, mutual funds* and term deposits.
What are the benefits of an RRSP?
Pay less tax today
You can deduct your annual RRSP contribution from your gross income to reduce the tax you owe each year.
Defer tax on interest earned
The interest you earn is tax-sheltered until you retire and withdraw money – at which point you’ll likely be in a lower tax bracket.
Borrow for your needs
You can withdraw money without penalty to buy your first home or pay for education, as long as you repay it within 15 years.
Get personalized retirement planning
Make sure you’re ready to retire your way. Our expert retirement planners will help you define what your ideal retirement looks like and offer the genuine, personalized advice you need to achieve it. No cookie-cutter, one-size-fits-all solutions here.
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Frequently Asked Questions
“I don’t have a lump sum ready to invest right now.”
“I have about $500 ready to invest.”
If you have some tolerance for risk, consider investing in an RRSP Mutual Fund. It’s essentially a pool of money invested in securities such as stocks and bonds. The main advantage of mutual funds is they give small investors access to professionally managed, diversified portfolios. They offer more growth potential than guaranteed investments such as RRSP Term Deposits.
“I don’t want to take any risks with my RRSP investments.”
Consider investing in RRSP Term Deposits to get a guaranteed rate of return for a fixed period of time. You can get terms from 1 to 5 years with competitive rates of return.
“I’m not excited about term deposit rates, but I’m worried about market fluctuations.”
A RRSP Index Linked Term Deposit offers the best of both worlds, allowing you to take advantage of Canadian stock market gains while protecting your capital. Both 3 and 5 year options are available for purchase.
Not sure how much to save for retirement?
Try our retirement planning calculator to see how much you’ll need to save to achieve your retirement dreams.
Other investing options you may like
Ideal if you want to save for life’s big goals tax-free.
Ideal if you want to save for a child’s education.
Ideal if you want professionally managed investments.
Ideal if you want to invest your money worry-free.
*Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc.
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