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.
of working age people typically save for short-term goals rather than longer term plans
of working age people are paying into a retirement account each month
of working age people are currently saving for future nursing/care home fees
of working age people are predicting a comfortable retirement
Source: 2018 Future of Retirement report, Bridging the GAP - Cost of Aging
Retirement Tips and Tools
Find out how much it could take to create a comfortable retirement for yourself.
10 Retirement Savings Tips
Learn how to make the most of your RRSP contributions.
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.
- RRSP (Registered Retirement Savings Plans)
- Locked-in accounts
- TFSA (Tax-Free Savings Accounts)
- Non-registered accounts
- 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- Investment returns grow tax-free until the money is withdrawn, at which point all contributions, capital gains and income will be taxed, typically at a lower tax rate.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.
RRSP (Registered Retirement Savings Plans)
TFSA (Tax-Free Savings Accounts)
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.
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