What is an RRSP?

An RRSP is a Registered Retirement Savings Plan. In layman’s terms; it’s a great savings tool for retirement!

You can put cash, GICs, Mutual Funds, Stocks, or other investment products/ accounts into an RRSP, where the tax on any gains will be deferred until the money is withdrawn.

Who is an RRSP For?

An RRSP is for anyone in Canada that has a SIN, files a tax return and earns employment income. Those under 18 are also eligible for an RRSP.

Just because it uses the word 'retirement', doesn't mean you shouldn't start thinking about it until you are thinking about retirement.

The best time to start an RRSP is today, contact us get started!



Compound interest allows you to grow wealth faster than a regular savings account.


The income from your investments is tax-deferred until it is withdrawn.


By withdrawing money during retirement, there is the possibility of a lower tax rate, as you may fall into a lower tax bracket.


Holds cash, GICs, Mutual Funds, Stocks, bonds or other investments. Tax on any gains is deferred.

Why Contribute to an RRSP?

CPP Might not cut it

The average retired Canadian receives about $673.10 (Stats Can) from CPP / month as of June 2018.  Think about your current lifestyle, could you live on $673 a month?

The Power of Time, Money and Compound Interest

It is important to contribute to an individual RRSP, as soon as you can.  The longer you let your money grow, the more you will have when you retire.

If you start to invest a small, but consistent amount now, it will continue to gain interest through the years, as opposed to waiting to deposit a lump sum later, where you will have lost out on interest though the years.  

In the following example, you invest $5,000 every year for 10 years and get a 3% rate of return each year.


Annual Principal

Previous Closing Balance + Annual Principal

Interest (3%)

Closing Balance





















If you wait until you have saved up $50,000 over 10 years, you will be missing out on $9,000* worth of interest that you could have gained!

*Depending on current rates and amount invested.

Don't miss out on compound interest! Meet with us and get started on your RRSP today!


RRSPs (Rates effective 2019-07-02) Rates
1 Year 1.400%
2 Years 1.750%
3 Years 1.800%
4 Years 1.900%
5 Years 2.300%
13 Month 1.450%
18 Month 1.950%
30 Month 2.150%
Variable RRSPs 1.050%


Don't see your question below, contact us and we'd be happy to help!

How Can I Contribute? Expand/Collapse

At 1st Choice, it’s easy.

You can make lump sum deposits or set it up to be auto withdrawn anytime.

Most people prefer auto withdrawals on the same day as their paycheck, or monthly auto withdrawals.

How Much Can I Contribute? Expand/Collapse

You can contribute up to 18% of your income per year, plus any unused RRSP contribution room carried forward, minus any pension adjustment.

For 2019, the maximum value is $26,500.

What if I can’t max it out?

Good news, you can carry any unused contribution room forward into future years! 

How Will I Know How Much Room I Have?

You can check out your notice of assesment on the CRA website.

I Have Debt, Should I Still Contribute? Expand/Collapse

Even if you have debt, contributing to an RRSP is a good habit to get into. The money you contribute now it will continue to grow and gain interest throughout your life.

If you can start with $10 a paycheck, it will benefit you in the long run.

If you have debt, it is important to consider how you will pay it off  because debt also accumulates interest. If you need help getting started, come see us.

We have helped and continue to help many people figure out how to pay off their debt and save for retirement at the same time.


Contact us today to get started today!

What if I Don’t Have a Lot (or Anything) to Contribute to an RRSP? Expand/Collapse

Many people think that they can only contribute via large amounts of $1,000 or more.  

This isn’t true. Most people have auto withdrawals on pay day that go into their RRSP.  From there, the money is able to grow for years to come!

You can even start with $1 a paycheck (although, we usually recommend starting with $25).

We also offer the option for an RRSP Loan. Contact us, to learn more.

I’m worried I might need to withdraw money before I retire, what should I do? Expand/Collapse

If you planning a larger purchase, like a house or paying for school, an RRSP might not be the best option and you should consider a TFSA.


If you want help with this decision contact us, and we’ll help you plan for your future.


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