How to find the right savings plan

Find a savings plan with everything you and your family needs

Whether you’re just starting to think about retirement or you’re getting closer to retiring, saving more for retirement is smart.

If you're like most Canadians, an RRSP may be the first savings plan that comes to mind, but there's more you can do to save for your retirement.

Non-registered plans and TFSAs, in addition to RRSPs, can help you save money, preserve your wealth and minimize your taxes — both when you make your contributions and every year between now and retirement.

If you're interested in integrating one or more of these plans into your retirement savings portfolio, the table below makes it easy to compare and choose one, two or all three options based on your needs and investment goals.

 

Non-registered

RRSP

TFSA

Annual contribution limit

 Unlimited

 Yes (based on  earned income)

 Yes (no earnings  requirement)

 Legislated minimum age to 

 No

 No

 Yes – age 18

 Legislated maximum age to 

 No

 Yes 71

 No

 Carry-forward of unused room

 n/a

 Yes

 Yes

 Tax-deductible  contribution

 No

 Yes

 No

 Monthly penalty on excess 

 n/a

 Yes

 Yes

 Tax-deferred/tax-free investment growth

 No

 Yes (tax-deferred)

 Yes ( tax-free)

 Taxable on withdrawal

 Taxable disposition

 Fully taxable

 Tax-free 

 Withdrawals added to contribution room

 n/a

 No

 Yes 

 Withdrawals impact federal income-  tested benefits 

 Yes

 Yes

 No

 Interest deductible on loan to 

 Yes

 No

 No

 Available for use as collateral 

 Yes

 No

 Yes 

 Tax-deferred/tax-free  transfer  to spouse

 Yes

 Yes 

 Yes 

 Tax-deferred/tax-free transfer to 

 No

 No – fully taxable 

 Yes (investment  income after date  of death is taxable)

 Loss denied on transfer-in-kind 

 Yes

 Yes 

 Yes 

If you’re still not sure which plan or combination is right for you, a financial advisor can help you. Based on your individual needs and preferences, a financial advisor will work with you to determine how much of your savings should be in each of these plans, taking into account their tax implications and how you want your investment to grow.

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