RRSPs are one of the last meaningful tax shelters left to Canadians. Start an RRSP today!
The benefits of early contribution
Two taxpayers, both 25 are considering RRSPs . . .
- Taxpayer A starts immediately, contributes $2,000.00 a year for 10 years at 8%
- Taxpayer B waits 10 years to start, contributes $2,000.00 a year for 30 years at 8%
- When they turn 65, Taxpayer A will have $70,000.00 more in her RRSPs despite the fact that taxpayer B contributed three times as much!
How much can I Contribute to an RRSP?
Making the maximum contribution each year helps to ensure your financial
security at retirement.
You can determine your RRSP deduction limit by clicking on this link: Canada Revenue Agency: How much can I contribute and deduct?