Save for retirement with an RRSP from iA Clarington

There are many ways to save for retirement, but Registered Retirement Savings Plans (RRSPs) are often the first choice because of the tax advantages they offer.

What is an RRSP?

It’s a registered account that can be used for holding investments specifically for retirement. The “registered” part means that the account conforms with required tax rules administered by the Canada Revenue Agency (CRA). These rules determine how much you can contribute each year, what you can invest in, when you must terminate your RRSP and the implications of taking money out of your account.

Why choose an RRSP?

RRSPs have two key advantages over other types of savings, such as Tax-Free Savings Accounts or non-registered savings.

  1. Any contributions you make up to your contribution limit are tax-deductible and may reduce the income tax you pay in the year.
  2. You won’t pay any taxes on your contributions or any investment growth that occurs until you withdraw money from your RRSP.

You can open an RRSP at any age as long as you had earned income in the previous year. You can contribute up to 18% of the income you earned in the previous year (up to a maximum of $25,370 in 2016 and $26,010 in 2017) less any contributions to a registered pension plan made by you or your employer during the preceding year.  Any unused contribution room can be carried forward. 

Invest regularly

RRSPs are long-term investments.  Trying to time the markets is difficult if not impossible to do.  Many advisors recommend staying invested through the market’s ups and downs instead of reacting to short-term market volatility.

One way to invest regularly is to set up pre-authorized contributions (also known as PACs), so your financial institution can automatically contribute a set amount each month to put toward your RRSP.


RRSPs can hold many types of investments, from low-risk Treasury Bills and Guaranteed Investment Certificates (GICs) to higher-risk, and potentially higher-return equities.

You can reduce risk and enhance your long-term return potential by choosing a portfolio of well-diversified investments. For instant diversification, you can invest in a basket of different types of investment funds. iA Clarington offers a range of funds that are professionally managed by skilled and experienced investment professionals.

Start investing today

Please contact your financial advisor today to learn how an RRSP from iA Clarington can help you achieve your financial goals.