Today’s Poll

Practical Financial Solutions: Super Seven ways to save and grow RRSP

By Contributor
January 24th, 2016

You already know that one of the best retirement savings strategies for most Canadians is a Registered Retirement Savings Plan (RRSP) — and, as this year’s RRSP contribution deadline nears, here is a Super Seven list of some of the best ways to get the most from your RRSP.
1. Beat that deadline:   This year’s RRSP contribution deadline is February29, 2016 – don’t miss it!

2. Maximize:  Always make your maximum contribution each year – that’s how to get the most in immediate tax savings and in long-term growth.  You’ll find your contribution room on your most recent notice of assessment from the Canada Revenue Agency (CRA).

3. Catch up:   Fill up unused contribution room. You can do that in a single year or over a number of years until you reach age 71

4. Rise up:   To have more money in retirement, raise your RRSP contributions as your income rises.

5. Borrow to save:  An RRSP loan can be a good option for maximizing this year’s contribution or catching up on past contributions – but only if the interest rate is low and you pay it back as quickly as possible. A good way to do that: Use your RRSP tax savings to help pay off the loan.

6. Diversify for growth:   Your maximum RRSP contributions are capped by the government – so to get the additional income you’ll likely need to enjoy the retirement of your dreams, be sure  to invest in a Tax-Free Savings Account (TFSA) and a well-balanced non-registered portfolio based on an asset allocation plan that matches your risk profile and time horizon.

7. Designate:   Choose a beneficiary for your RRSP (in Québec, this must be done through a will). Generally, RRSP assets with a beneficiary designation do not form part of your estate and do not attract probate fees. If your beneficiary is your spouse/partner or a disabled child/grandchild, your RRSP can be transferred tax-deferred to your beneficiary’s registered plan.

This column is sponsored by Roger Higgins, a BA, CFP Division Director for Investors Group in the Kootenays. For all your financial planning needs, contact Roger at 250-352-7777 of email at

Other News Stories