FAQ – Savings and investment – RRSPs

RRSP allows you to put aside money tax-free to save for retirement, while also reducing your taxable income. You can use it, for example, to save for retirement, pay for your education or buy your first home.

TFSA allows you to put aside money tax-free to save up for anything you want. Renovate your home, start a business, or travel, the possibilities are endless!

Compare them This link will open in a new window. to see the benefits of each product and find out which one’s right for you.

Check out the 9 most common myths about RRSPs and TFSAs External link. This link will open in a new window..

There are two options available to open an RRSP:

Yes, AccèsD makes it easy to contribute to your RRSP. Log on.

Yes, there’s an age limit. You can contribute to your RRSP until the end of the year you turn 71.

For your spouse's RRSP, the same rule applies. If you have contribution room available, you can contribute to your spouse’s RRSP until the end of the year they turn 71.

You can find it in the RRSP Deduction Limit Statement section of the Notice of Assessment from the Canada Revenue Agency (CRA) after you filed your tax return last year.

If you can’t find your notice, contact a CRA tax office or visit the CRA’s My account External link. Opens in a new window. portal.

No, because the most important part of compound interest is time.

Starting to invest when you’re young is definitely the way to go, even if you start small. Automatic transfers are a great way to get a head start.

Saving regularly in small amounts is easier on your budget. The great thing about automatic transfers is that you choose how much and how often you want to contribute, whatever works best for you. Your contributions are automatically deducted from your account and invested in your RRSP.

The sooner the better. You can start contributing to an RRSP the year you start earning contribution room (i.e., the year after you start earning an income). And after you turn 19, you get $2,000 of wiggle room for overcontributions. Time is money: the earlier you start contributing, the bigger your RRSP will be.

It all depends on your retirement plans. To maintain your lifestyle in retirement, the general rule of thumb is that you’ll need about 70% of the income you earn in the years leading up to your retirement. Most people become eligible for retirement income from CPP/QPP or a private pension plan around age 60, but it’s usually not enough. You’ll still need savings (ideally in an RRSP) to maintain your lifestyle.

The compounding effect on your interest means the more you save, the more you earn. Each dollar you’re able to contribute to your RRSP increases the capital on which the interest is calculated. So if you have extra money or if you’re in a better financial position, it’s a good idea to increase your RRSP contributions. Even putting an extra $5 a week into your RRSP will ultimately make a difference.

If you don’t have enough cash on hand to make an RRSP contribution, you might want to consider taking out a short-term loan. It’s one way to increase your RRSP contribution and get a tax break.

You can use those tax savings to pay down the loan, reducing your interest charges and the number of payments you’ll have to make.

If you don’t want to take out a loan, an easy way to fit savings into your budget is to set up automatic transfers. You can even do it yourself from AccèsD. Once your contributions are automatic, you won’t need to think about them!

You can use your BONUSDOLLARS for Desjardins financial products, including RRSPs. Since BONUSDOLLARS work like cash, there’s a lot you can do with them. Contact your caisse to redeem them towards a savings product.

Learn more about BONUSDOLLARS

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