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The world is changing and retirement is changing with it.

HSBC research shows a significant portion of Canadians are underprepared for retirement and are unsure how to build a long-term plan for their wealth.

Are you working toward your long-term wealth plan? We can help you with that.

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36%

of working age people typically save for short-term goals rather than longer term plans

38%

of working age people are paying into a retirement account each month

4%

of working age people are currently saving for future nursing/care home fees

54%

of working age people are predicting a comfortable retirement

Source: 2018 Future of Retirement report, Bridging the GAP - Cost of Aging

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Learn how to make the most of your RRSP contributions.

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Accounts to build your retirement savings

Different types of accounts can help you better prepare for retirement. Consider the benefits of each one to decide which options may be right for you.

An account specifically designed for retirement savings and investments.
Contributions reduce your taxable income in the year they’re made.
Investment returns grow tax-free until the money is withdrawn, at which point all contributions, capital gains and income will be taxed, typically at a lower tax rate. Contribution limits are based on your previous year’s income or the government-set maximum. You can carry forward unused contribution limits to another year.
Spousal RRSPs allow a higher-earning spouse to contribute to a lower-earning spouse’s RRSP while still receiving a tax benefit.
You may borrow up to $35,000 for the purchase of a first home under the Home Buyer’s Plan, or up to $20,000 for education purposes.
RRSPs can be converted into Registered Retirement Income Funds (RRIFs) at any time but no later than December 31st of the year you turn 71, which then requires minimum withdrawals based on a prescribed formula.

An account specifically designed for retirement savings and investments.
Contributions reduce your taxable income in the year they’re made.
Investment returns grow tax-free until the money is withdrawn, at which point all contributions, capital gains and income will be taxed, typically at a lower tax rate. Contribution limits are based on your previous year’s income or the government-set maximum. You can carry forward unused contribution limits to another year.
Spousal RRSPs allow a higher-earning spouse to contribute to a lower-earning spouse’s RRSP while still receiving a tax benefit.
You may borrow up to $35,000 for the purchase of a first home under the Home Buyer’s Plan, or up to $20,000 for education purposes.
RRSPs can be converted into Registered Retirement Income Funds (RRIFs) at any time but no later than December 31st of the year you turn 71, which then requires minimum withdrawals based on a prescribed formula.

Locked-in accounts consolidate your former defined benefit or defined contribution pension plan into one, easy-to-manage account that can sit alongside your RRSP.
Locked-in accounts include LIRAs (locked-in retirement accounts) and LRSPs (locked-in retirement savings plans). The type of account you open depends on your province and the type of pension plan you’re consolidating.
You can choose from the same range of products as an RRSP account—including mutual funds, GICs, managed solutions and more—for your locked-in account.
Locked-in retirement accounts must be converted into an income stream by December 31st of the year you turn 71. An income stream may include Life Income Funds (LIFs), a type of Registered Retirement Income Funds (RRIFs) for locked-in accounts.
Early access to your locked-in account, such as withdrawals are only allowed in specific circumstances (for example, financial hardship).

Ideal as a source of tax-free income in retirement.
Unlike an RRSP, contributions are not tax deductible, but all investment growth and income are exempt from Canadian income tax.
Annual and lifetime contribution limits apply.
You can have multiple TFSAs holding a range of financial products—including mutual funds, managed solutions, GICs and savings accounts—provided you remain within your limit.
Withdrawals in the current year will be added back to your contribution room the following year.

The option to save more once you’ve maximized your RRSP and TFSA contribution limits, or if you are not eligible for other account types.
No annual or lifetime contribution limits. No limits based on income.
May be able to apply tax credits for specific investments and income, such as dividends from Canadian companies.
All growth and income are taxable and must be included in your tax return.
Joint non-registered accounts allow for sharing assets between you and another person.

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Published by HSBC Investment Funds (Canada) Inc., January 2021.

This material is for information purposes only and is not intended to provide specific financial, legal, tax, investment or other advice, and should not be relied upon in that regard. You should not act or rely on the information without seeking the advice of a professional. Please consult your tax advisor to find out which strategies best suit your tax situation. Registered plans for individuals are subject to specific limits, tax implications and restrictions which can be found on the CRA Savings and pension plans webpage.

*This calculator, your use of it, and any results generated by it, are for illustrative purposes only and are not intended to provide specific financial, investment, tax, legal, accounting or other advice to you. You should not act or rely on the information provided without seeking the advice of a professional. Before you make an investment decision, we recommend that you consult with an investment professional who can help to ensure that your own circumstances have been properly considered and any action you take is based on the latest available information. Any forward looking results or projected returns presented by this calculator are only estimates and are based on assumptions that may turn out to be inaccurate or inapplicable. Actual results or returns may be materially different. The use of any historical rate of return should not be relied upon as past performance is not indicative of future performance. This is not an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. This calculator uses software under license from a third-party that is not a member of the HSBC Group.

HSBC Global Asset Management (Canada) Limited (“AMCA”) is the manager and primary investment advisor for the HSBC Mutual Funds. HSBC Investment Funds (Canada) Inc. (“HIFC”) is the principal distributor of the HSBC Mutual Funds. HSBC Mutual Funds are also distributed through authorized dealers. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus, Fund Facts, and other disclosure documents before investing. Mutual funds are not guaranteed or covered by the Canada Deposit Insurance Corporation, HSBC Bank Canada, or any other deposit insurer or financial institution. The net asset values of all mutual funds, including the HSBC Mutual Funds, change frequently and any past performance may not be repeated. For money market funds, there can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you.

^** The Digital Banker award recognises and celebrates the world's preeminent Financial Services Organisations that are pioneering unrivalled standards and capabilities in their respective fields.

HSBC Wealth Compass™ is a trade-mark of HSBC Group used under license by HIFC. HSBC Wealth Compass™ is an online service offered by HIFC which allows clients to discover their investor profile, receive a personalized investment recommendation and apply to start investing in mutual funds.

References to the 'HSBC Group' are references to HSBC Holdings plc its subsidiaries and affiliated companies. HSBC Holdings plc is a public limited company registered in England and Wales under Company Register Number 617987 and with its registered office at 8, Canada Square, London, England E14 5HQ.
All products and services of HIFC and AMCA are only available for sale to residents of Canada, unless the laws of a foreign jurisdiction permit sales to its residents. Please contact your HSBC Mutual Fund Advisor for more details. The contents of this site should not be considered an offer to sell or a solicitation to buy products or services to any person in a jurisdiction where such offer or solicitation is considered unlawful. HIFC is a direct subsidiary of AMCA and an indirect subsidiary of HSBC Bank Canada, and provides its services in all provinces of Canada except Prince Edward Island. AMCA is a wholly owned subsidiary of, but separate entity from, HSBC Bank Canada.

¹ HSBC InvestDirect is a division of HSBC Securities (Canada) Inc., a wholly owned subsidiary of, but separate entity from, HSBC Bank Canada. HSBC Securities (Canada) Inc. is a member of the Canadian Investor Protection Fund. HSBC InvestDirect does not provide investment advice or recommendations regarding any investment decisions or securities transactions.

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