Katherine Al Haddad

By Katherine Al Haddad

February 11, 2016

Financial Security

The RRSP: More Than a Retirement Vehicle

Article revised on 28 February 2020

Thinking of purchasing a home in the next few years or going back to school? Did you know RRSPs can help you accomplish these projects? It’s true, RRSPs can be used to do a lot more than saving for your retirement.

The Registered Retirement Savings Plan (RRSP) is a long-term investment vehicle that enables you to put money aside for your retirement. But it can also help you in the short term.

What to do with your RRSP before retirement?


Under the Home Buyers’ Plan (HBP), you can make a tax-free withdrawal of up to $35,000 from your RRSP¹ ($70,000 per couple) to purchase a home. You then have 15 years to pay the amount of the withdrawal back.


The Lifelong Learning Plan (LLP) allows you to withdraw up to $20,000 from your Registered Retirement Savings Plan to finance your education. You then have a maximum of 10 years to pay back the withdrawal amount.

The RRSP, in a nutshell

You can contribute to your RRSP every year. The contribution amount can go up to 18%² of your annual income. The money you deposit into it is then deducted from your taxable income. The money you invest, along with the interest, grows tax-free as long as it stays in your plan. You will still have to pay taxes on these funds when you make withdrawals from your RRSP. Logically, however, your income at retirement will be lower and you will be able to benefit from a lower tax rate. Just one more advantage of contributing now!

Feel free to contact a financial security advisor to help you build a solid RRSP strategy.

1. Some conditions apply. | 2. If you contribute to a pension plan, this percentage can vary.

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