RRSP Benefits

Tax Deductions

RRSP deposits reduce your annual taxable income by the amount of the eligible contribution, lowering the tax you pay so you can keep more in your pocket. The amount you contribute to your RRSP is claimed as a tax deduction, therefore reducing your “earned income” and saving you income tax.


Your investments grow, tax deferred, while invested in the RRSP. The money you earn on your contributions stay in your RRSP. You don’t pay tax on it until you take it out of the plan. It is an ideal way to harness the power of compound interest and supplement your retirement income. This is beneficial to those of us who will earn less in retirement than we do working today.

Income Splitting

Income splitting 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 even out retirement income and lowers your combined taxes both now and in retirement.

RRSP Flexibility

You are able to borrow from your RRSP for some of life’s major events such as buying your first home through the Home Buyers Plan or pursing an education using the Life Long Learning Plan .

Retirement Income Source

By contributing to your RRSPs now, you will have more money at your disposal when you retire. If you are only receiving government pensions, this may give you the extra income needed to maintain the lifestyle you have grown accustomed to. If you also have a pension plan from work, this increased money will allow you to travel more or do other activities that interest you.

A third party is an individual or entity, other than the account holder or those authorized to give instructions about the account, who directs what happens with the account. For example, if an account were opened in one individual’s name for deposits that are directed by someone else, the other person or entity would be a third party.

  • A secondary piece of identification from the primary list above
  • Canadian Birth Certificate
  • Credit Card bearing the name and signature of the individual which has issued by a well-known and reputable Canadian financial institution
  • A CNIB (Canadian Institute for the Blind) client card bearing the individual’s photo and signature
  • Provincial Outdoors Card
  • Canadian University or College Student Card with photo (for student identification only)
  • An employee identification card (with photo) issued by an employer that is well known in the community (i.e. KGH, DND, Queens University, Corrections Canada, etc.)
  • Foreign passport
  • Canadian Passport
  • Permanent resident card
  • Citizenship card (issued prior to 2012)
  • Secure Certificate of Indian Status issued by the Government of Canada
  • Driver’s licenses issued by province or territory
  • The DND (Department of National Defense) 404 driver’s license
  • Nexus Card issued by Canada Border Services Agency
  • Provincial Service Cards
  • Provincial or territorial identity cards (i.e. Ontario Photo Identification Card)
  • Foreign Passport (only if it is equivalent to a Canadian issued photo identification document)