Retirement Savings Plan

Retirement Savings Plan

Retirement Savings Plan

Government income programs make up part of a retirement plan, but they do not provide the level of income that most Canadians look for during retirement. A Retirement Savings Plan (RSP) is one of the best ways to help ensure your financial security. You may also know it as a Registered Retirement Savings Plan (RRSP). Only when it is set up with Canada Revenue Agency (CRA) is it called an RRSP. Around for over 60 years, the tax structure allows you to defer paying income tax on your deposits and earnings. It is only when you withdraw the money that tax is applied.  Since many Canadians have a higher tax rate during their working years than retirement years, this often results in overall tax-savings.
 

Notable features 

  • Annual limit contribution – 18% of earned income (subject to the annual contribution limit)
  • Unused contribution room – Carried forward from year to year
  • Home Buyers' Plan
  • Lifelong Learning Plan
  • Income splitting
  • Retirement Income Fund
Your employer typically deducts income tax based on your total annual income. A deposit to your RRSP reduces your taxable income. This means you may end up paying more income tax than required during the year. When you file your tax return with the CRA and claim your RRSP deduction, you would receive a refund for any income tax that was overpaid.

You can locate your maximum contribution limit by looking on your most recent Notice of Assessment. This Notice is issued from CRA. This maximum amount is based on 18% of your previous year’s earned income, up to the maximum RSP contribution limit. It also includes any unused contribution room from previous years. If you are a member of a pension plan, your pension adjustment will reduce the amount you can contribute to your RRSP. Unused contribution room can be carried forward and used in future years. 
 

Contributing to an RSP

RSP contributions can be made during the tax year or within the first 60 days of the following tax year. Contributions can also be made monthly. When you contribute monthly, you benefit from something called dollar cost averaging. Dollar cost averaging is an investment strategy. Deposits of a fixed-dollar amount are made at regularly scheduled intervals. This means that you make regular purchases and your costs are averaged over the year. This benefits you in two ways. One is that this helps reduce the impact of a bumpy market. And two, your contributions are compounding over the year, making your money work that much harder for you. Making retirement savings a financial priority can help you achieve your desired retirement income. 
 

Products that offer an RSP

  • Guaranteed Interest Account
  • Pivotal Select segregated funds
Customize these prospecting letters to start a conversation with potential clients. 
 
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Are you on the right track financially?

Someone once said, pay yourself first. A great idea but you know, and I know, that often we are the last to get paid. Bills, student loans, rent are often the priority, but did you know there is a way to pay yourself first?

As a financial advisor I can help you create a financial plan that works for you. By learning about you and your goals and objectives, I can help you put together a financial strategy that can help you now and support your future lifestyle. We can work together to determine how much you need to save and select an investment strategy that will help you get there.
 

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Are you financially on track for retirement?

Most of us realize that it is in our best interest to save for retirement. We put aside money when we can, but often we are unsure if we will have enough saved in order to achieve a financially secure retirement.
 
As a financial advisor I can help you create a retirement plan that works for you. By learning about your retirement objectives, I can help you estimate the income you will require in order to support your retirement lifestyle. We can work together to determine how much you need to save and select an investment strategy that will help you get there.

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There is still time to figure it all out

No doubt your plans for retirement have changed several times over the years. I suspect your retirement plans have taken a backseat more years than you care to count. Well good news, there’s still time.
 
As a financial advisor I can help you create a retirement plan that works for you. By learning about your retirement objectives, I can help you estimate the income you will require to support your retirement lifestyle. We can work together to determine how much you need to save and select an investment strategy that will help you get there.

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This table includes downloadable marketing materials saved in PDF format. Each row is a different product and may contain versions of the brochure in alternate languages.
Form Number Cover Marketing Material Name Available Languages Product
0799 Download cover image for file Guaranteed Interest Accounts Reg/Non Reg Application  (2021/04/12) Guaranteed Interest Accounts Reg/Non Reg Application (2021/04/12) File
(fillable/savable)
FR
1384 Download cover image for file Pivotal Select Application Registered/Non-Registered (2021/04/12) Pivotal Select Application Registered/Non-Registered (2021/04/12) File
(fillable/savable)
FR
0378 Download cover image for file Pre-Authorized Debit Form Pre-Authorized Debit Form File
Available in PDF only (fillable/savable)
FR
1673 Download cover image for file RRSP to RRIF Conversion Form (2020/08/10) RRSP to RRIF Conversion Form (2020/08/10) File
Available in PDF only (fillable/savable)
FR
This table includes downloadable marketing materials saved in PDF format. Each row is a different product and may contain versions of the brochure in alternate languages.
Form Number Cover Marketing Material Name Available Languages Product
1357 Download cover image for file Managing a Retirement Savings Plan tax refund Managing a Retirement Savings Plan tax refund File
If you have ever received a tax refund you will know the dilemma that comes when that money hits your bank account. The initial reaction is to spend it on something for you; and why not! You have worked hard all year and deserve a reward!
FR
1355 Download cover image for file A Retirement Savings Plan is just as relevant now as it was over 60 years ago A Retirement Savings Plan is just as relevant now as it was over 60 years ago File
Yes, that old thing. With the popularity of the Tax-Free Savings Account, the Retirement Savings Plan (RSP) does not seem to evoke the same wow factor it once did. An RSP from Equitable Life can support your goal of home ownership, further education, and retirement.
FR
0000 Download cover image for file Facts & Figures Facts & Figures File
TFSA Contribution Limits, RRSP Contribution Limits, TOP Marginal Tax Rates, Retirement Income Fund Minimum, Canada Pension Plan Benefits. (Available in PDF only).
FR
1583 Download cover image for file Make your money work for you Make your money work for you File
We all know a Retirement Savings Plan (RSP) is a great way to save for retirement. We all know a Retirement Savings Plan (RSP) is a great way to save for retirement. When we make an RSP contribution we receive an immediate tax refund.
FR
1613 Download cover image for file Online banking makes saving simple. Online banking makes saving simple. File
Did you know your clients can make additional deposits to their Equitable Life® savings plan through their financial institution’s online banking service?
FR
1460 Download cover image for file Personalized Ads - WHAT DOES YOUR RETIREMENTBUCKET LIST INCLUDE? Personalized Ads - WHAT DOES YOUR RETIREMENTBUCKET LIST INCLUDE? File
Equitable Life of Canada is pleased to offer you professionally designed personalized ads to advertise the benefits of an Equitable Life RSP.
FR
1354 Download cover image for file Borrowing money to save money Borrowing money to save money File
Have you ever considered borrowing money to contribute to your Retirement Savings Plan (RSP)? No? Well consider this. Unlike credit card debt, RSP loans are considered “good debt”. Investment loans and mortgages fall into the “good debt” category because they help to increase your net worth.
FR
1910 Download cover image for file Personalized Ads - WHAT DID YOU WISH FOR THIS YEAR? Personalized Ads - WHAT DID YOU WISH FOR THIS YEAR? File
Equitable Life of Canada is pleased to offer you professionally designed personalized ads to advertise the benefits of an Equitable Life RSP.
FR
1352 Download cover image for file Retirement Realities Retirement Realities File
The perception of retirement has changed. You remember watching those commercials about the retired couple playing golf, yachting, or strolling down a sandy white beach. Today’s retirement can look a lot different. Many retirement plans are certainly not as flashy as all that and may be more practical.
FR
1899 Download cover image for file Taking money out of your RSP? Taking money out of your RSP? File
A Retirement Savings Plan (RSP) is an excellent way to save for retirement. Of course, it never fails that there is always that moment in life when you need extra cash. For those moments that require a large amount of money, think twice before pulling it out of your retirement savings. Here is why.
FR
1910A Download cover image for file What did you wish for this year? poster What did you wish for this year? poster File
A good financial plan strikes a balance between enjoying your money now and saving for a comfortable retirement.
FR
1460A Download cover image for file What does your retirement bucket list include? poster What does your retirement bucket list include? poster File
A good financial plan strikes a balance between enjoying your money now and saving for a comfortable retirement.
FR
1909 Download cover image for file When it is time to convert your RSP to a RIF When it is time to convert your RSP to a RIF File
The thought of retirement can be a blessing or can cause concern. The difference in attitude comes down to planning. If you have planned for retirement, congratulations. If you have not, you have got some work to do.
FR
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Article       
You can start planning and saving for your retirement at any age
Many of us know we should start early so our money has a longer time to grow. With the costs of buying a home, raising kids (and paying for their education), it may be hard to get going, let alone know where to begin. Here are four steps that will help you get started.
 
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What is the deal with those Retirement Savings Plans anyway?
A Retirement Savings Plan or RSP as they say, is one of the best ways to help ensure your financial security. I had my doubts but considering it has been around for over 60 years, I figured there had to be something to this RSP thing. And guess what, there is!
 
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If you’re like most people, the dollars you have for savings are not unlimited
That means you have some decisions to make, including whether it makes more sense to pay down your mortgage quickly or invest in an Retirement Savings Plan (RSP). It’s true that reducing your mortgage quickly makes a lot of sense, but you’ll also need a significant nest egg if you want to retire in comfort.
 
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How to choose between an RSP and a TFSA
For years Canadians have utilized Retirement Savings Plans (RSPs) as the primary investment vehicle for retirement savings.  With the introduction of Tax-Free Savings Account (TFSA), there has been great debate over where to invest: RSP or TFSA? Although the two account types share some common traits, there are some key differences.
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Case Study

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Darren recently moved from contract to full-time employee with his employer. Darren’s dad told him to consider a savings account now that he is earning more money. Darren feels he is too young to start worrying about saving. At age 25, Darren feels he has tons of time.

Do-you-know-Darren-(1).jpg

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https://cdn.equitable.ca/forms/unsecured/savings_retirement/Darren-should-start-investing.pdf

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Alyssa is a successful business owner. She is on track to pay off her mortgage before she retires and has recently paid off her car loan. In her free time, Alyssa volunteers at her local senior’s centre. Alyssa wants to start putting money away for retirement and a rainy day. What should she do?

Do-you-know-Alyssa-(2).jpg

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https://cdn.equitable.ca/forms/unsecured/savings_retirement/Alyssa-should-consider-setting-up-a-TFSA.pdf

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Ash recently increased his Retirement Savings Plan contributions and will be getting a larger tax return come April. Dakari just received a substantial increase in his salary. Their current mortgage is quite large, and Dakari thinks the extra income should go towards paying off their mortgage. Ash thinks the extra income should go towards retirement savings. Which options is best?

Do-you-know-Dakari-and-Ash.jpg

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https://cdn.equitable.ca/forms/unsecured/savings_retirement/Dakari-and-Ash-should-consider-these-options.pdf

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Leona is 70 and is recently retired. She enjoys volunteering at the local food bank and supporting her local animal shelter. Leona receives a modest pension, collects Canada Pension Plan (CPP) and Old Age Security (OAS), and has set aside some extra savings in a Registered Retirement Savings Plan (RRSP) over the years.

Leona is worried about paying tax on her income now that she is in retirement. What options are available to her?

Do-you-know-Leona.jpgdownload.png

https://cdn.equitable.ca/forms/unsecured/savings_retirement/Leona-should-consider-redirecting-her-assets.pdf

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A Retirement Income Fund (RIF) and Life Income Fund (LIF) both provide income solutions during retirement. A RIF is used when transferring assets from a Retirement Savings Plan (RSP). A LIF is used when transferring assets from a pension. Some provinces require that a LIF be converted to a life annuity in the year an individual turn 80. Both a RIF and LIF provide continued growth in a tax-sheltered environment. Both options also offer choice in how assets are invested.


Notable Features

  • Flexible income options (subject to government minimums and maximums)
  • Competitive interest rates
  • Choice of investment options


Products that offer a RIF and LIF

  • Guaranteed Interest Account
  • Pivotal Select
This table includes downloadable marketing materials saved in PDF format. Each row is a different product and may contain versions of the brochure in alternate languages.
Form Number Cover Marketing Material Name Available Languages Product
1690 Download cover image for file Converting Your Savings into Retirement Income Converting Your Savings into Retirement Income File
As you approach retirement you will need to develop an income strategy that provides you with dependable income throughout your retirement.
FR
1845 Download cover image for file Retirement Income Fund Understanding minimum withdrawal percentages Retirement Income Fund Understanding minimum withdrawal percentages File
The federal government has set minimum withdrawal percentages for a Retirement Income Fund (RIF). The minimum withdrawal is based on age at the beginning of the year and the value of your fund on December 31 of the previous year.
FR
1909 Download cover image for file When it is time to convert your RSP to a RIF When it is time to convert your RSP to a RIF File
The thought of retirement can be a blessing or can cause concern. The difference in attitude comes down to planning. If you have planned for retirement, congratulations. If you have not, you have got some work to do.
FR
1673 Download cover image for file RRSP to RRIF Conversion Form (2020/08/10) RRSP to RRIF Conversion Form (2020/08/10) File
Available in PDF only (fillable/savable)
FR