Consumer Advisor Log in Français Main navigation Home Investments Insurance Group Benefits Forms & Tools Blog About Us RRSP A Registered Retirement Savings Plan (RRSP) lets you build tax-deferred retirement savings. Main Content Is an Empire Life RRSP for you? If you are like most Canadians, you need to rely on your own savings to fund the retirement lifestyle you want. If you have earned income, an RRSP is one of the most tax-efficient solutions. We can put you in touch with an advisor to get you on track Find an advisor How RRSPs work Canada Revenue Agency prescribes an annual maximum contribution amount based on a percentage of your earned income. To find out how much you can contribute, check your Notice of Assessment from Canada Revenue Agency. Eligible RRSP investments include cash, guaranteed deposits, segregated and mutual funds, stocks and bonds. Your RRSP contributions are deducted from your earned income for that year and your investments in an RRSP grow sheltered from tax. You can withdraw from your RRSP at any time, provided your RRSP is not locked-in under pension legislation. The amount you take out is added to your income in the year of withdrawal and tax is withheld at source. When you turn 71, you have to close your RRSP. You have three options at this point: Transfer your investments to a Registered Retirement Income Fund Use the funds to buy an annuity Cash in your investments and claim the entire amount as income Key Features and Benefits Immediate tax deductions Every dollar you contribute to an RRSP, within your RRSP contribution limit, reduces your earned income for that year. This reduces the amount of tax you pay and is especially beneficial if you are in a high marginal tax bracket. Tax-sheltered growth The investment growth in your RRSP is sheltered from tax. That means you don't have to pay taxes on interest, dividends or capital gains from your RRSP investments while the funds remain in the RRSP. Over the years it could mean a lot more money in your pocket to fund the retirement you want. For example, if you are in a 41% marginal tax bracket, a $50,000 investment earning a 6% average annual compound rate of return would grow to $151,280 in 20 years.* That same investment in a non-sheltered plan would only grow to $96,833. That’s a difference of $54,447.* Spousal contributions Another way to reduce your overall tax bill may be to make a spousal contribution. The higher-income spouse can contribute to the lower-income spouse's RRSP. The contributing spouse always gets the tax deductions, but generally, the lower income spouse pays the tax when the money is withdrawn. * For illustrative purposes only. Assumes growth is taxed as interest income. Investment solutions to meet your needs With Empire Life, you have a choice of investments to meet your retirement goals: RRIF A Registered Retirement Income Fund (RRIF) lets you convert your retirement savings into retirement income. Learn more TFSA A Tax Free Savings Account (TFSA) lets you grow your savings and access your money tax-free Learn more Forms & Tools Find everything for our insurance, investments and group benefits products including forms and calculators Learn more Find everything for our insurance, investments and group benefits products including forms and calculators Talk to your advisor about what kind of investor you are and the Empire Life Emblem GIF Portfolio that symbolizes you. Get started QUICK LINKS About Us Careers Investments Insurance Group Benefits Forms & Tools Blog COMPANY Contact Us Legal Privacy Policy Accessibility Consumer Information Empire Life Investments CONTACT US The Empire Life Insurance Company 259 King St. E. Kingston, Ontario 1 877 548-1881 info@empire.ca 8:30 am to 5:00 pm, EST weekdays VISIT US © 2001 - 2021 The Empire Life Insurance Company All Rights Reserved.