RRSP Deadline Monday March 1st 2021
Monday, March 1st is the deadline for Registered Retirement Savings Plan (RRSP) contributions for 2020!
If you don't have a pension with your work (most don't), RRSPs are key to a retirement strategy and saving money on income taxes.
In retirement, there are 3 main source of income. Each making up about a third of what you will require.
1. Canada Pension Plan and Old Age Security- The maximum monthly income of these plans is $1,800 but the average is is around $1,228.
2. Work Pension Plans or Group RRSPs- Work programs are often very lucrative for employees and expensive for employers. For this reason, many employers are no longer offering these plans.
3. Personal Savings- In this category, the key savings vehicles are Registered Retirement Savings Plans (RRSP) and Tax-Free Savings Accounts (TFSA) due to their tax savings.
If your employer does not have a pension plan or retirement savings strategy, it is up to you fill that gap. We work with clients to solve the question, how much should I save for retirement?
Make your contribution, ASAP.