RRSP benefits
- Save on taxes now: Deduct your contribution from your taxable income.
- Grow your money tax-deferred: Your investments grow without being taxed until withdrawal.
- Access funds for life goals: Borrow tax-free from your RRSP for major milestones like buying a home or going back to school.
- Save on tax later: You’ll likely be in a lower tax rate when you retire, which means you’ll pay less tax when you finally make RRSP withdrawals.
Your steps to success
- Define your goals. What’s most important to you?
- Meet with a SISIP advisor. Let’s crunch the numbers and create a personalized plan to achieve your goals.
So, why do you RRSP?
Think about the personal goal (or goals) that will an RRSP worth it for you.
| Save tax now | Have more money later | Buy a home | Go back to school |
Deduct contributions from your income | Watch your tax-deferred investments grow. | Access up to $60,000 with the Home Buyers Plan. | Withdraw up to $20,000 through the Lifelong Learning Plan. |
| Build wealth effortlessly | Supplement your pension | Save as a couple | Be financially ready |
Make automatic monthly contributions. | Draw income from your RRSP at a reduced tax rate. | Leverage Spousal RRSPs for family tax savings. | Have more financial resources for you and your family. |
See what’s possible
CAF members have invested over $1 billion with SISIP - and much of it is in RRSPs. A key to building wealth is to start early. Over time, small monthly RRSP contributions can grow into significant savings.
| This is what your investments could be worth at age 65 if you start investing when you are... | |||
|---|---|---|---|
| ...and invest this much every month | Age 20 | Age 30 | Age 40 |
| $100 | $275,499 | $142,371 | $69,199 |
| $200 | $550,999 | $284,742 | $138,399 |
| $300 | $826,498 | $427,113 | $207,598 |
| $400 | $1.1 million | $569,484 | $276,798 |
| $500 | $1.38 million | $711,855 | $345,997 |
| Assumptions: Monthly RRSP contribution earning a 6% annual rate of return | |||
RRSP tips for CAF couples
Maximize the benefits of RRSPs as a couple:
- Potentially double your contribution room, tax savings, and investment growth
- Access up to $120,000 combined for a first home
- Have up to $40,000 combined for your continuing education
- Allow tax-saving income splitting opportunities in retirement
What about spousal RRSPs?
In many CAF households, one partner earns more than the other. This can lead to uneven retirement incomes and higher taxes. A spousal RRSP balances things out:
- The higher-earner contributes to their partner’s Spousal RRSP
- In retirement, the lower-income partner draws from the Spousal RRSP, reducing the family’s overall tax burden
A SISIP advisor can analyze your situation and show you how a Spousal RRSP can benefit your family.
What about TFSAs?
A Tax-Free Savings Account (TFSA) can be a powerful partner to your RRSP.
While your RRSP helps you save on taxes now and build long-term wealth for retirement, a TFSA offers flexible, tax-free growth with no penalties for withdrawals. That makes it a great option for short- and medium-term goals, or simply for growing your savings without the tax bill.
A SISIP advisor can help you find the right balance between your RRSP and TFSA, based on your income, goals, and timeline. Many CAF members use both to their advantage. For example, you can stack the benefits by taking the tax refund created by your RRSP contribution and investing it in your TFSA.
Let’s find your reason
A SISIP RRSP can help you achieve your financial goals, whatever they may be. Need more reasons to talk to us?
- You can ask us anything: From setting financial goals to insurance, pensions, and debt management, we’re here to help.
- We’re part of your community: Serving CAF members, veterans, and families at bases and wings across Canada.
- Your interests come first: Our advice is unbiased, and our solutions are tailored to you - not outside shareholders.
Take the first step toward your financial goals
Complete this form to connect with one of our SISIP Financial advisors. Together, we’ll help you create a personalized plan to maximize your RRSP and achieve your long-term financial objectives.
