RRSPs: how to make up for lost time


By making a few adjustments to your budget, you can resume your savings habits and use your available RRSP contribution room.

Angela Iermieri* | Financial Planner | Desjardins Group

It's never too late to catch up on the RRSP contributions you haven't been able to make and to save for retirement.  

Buying a home can sometimes affect how quickly you can build retirement savings. Installation costs, recurring expenses, mortgage and HBP payments and the costs of raising a family make up a huge part of a budget.

Now's a good time to update your financial plan based on your current goals and your retirement goals so you can review the required pace of saving with your advisor.

In the meantime, let's take a look at 2 good practices for restarting your contributions now.

Save to contribute
By making a few adjustments to your budget, you can resume your savings habits and use your available RRSP contribution room.
  • Set aside a regular amount to save (or an additional amount if you're already saving). One tip: set yourself a goal with a specific date; it will help you stay disciplined. 
  • Boost your RRSP savings to reduce your taxable income and take advantage of the benefits of various income-based credits and social programs, e.g., the Canada Child Benefit, childcare expenses deduction and GST/HST credit. 
  • By re-investing your tax refund in your RRSP, you'll boost your retirement savings even more and make up for what you didn't contribute in past years.
Using a TFSA to complement your RRSP makes it easier to build tax-free savings. You can then take that money to contribute to your RRSP.

Borrow to save 
Not a "natural saver"? Behind on your RRSP contributions? If your financial situation allows, it's a good idea to take out an RRSP loan to maximize your contributions.
  • Boost your annual contribution with the amount borrowed. The borrowing cost is reduced with today's lower interest rates.
  • Apply the tax refund to the loan so you can pay it off faster.
  • Pay off the loan within a year to get the most of it and to maintain the financial leeway needed to keep contributing every year. 
  • To make sure you stay within your budget and don't exceed your borrowing ability, borrow only what you can pay back.

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* Financial Planner and Mutual Funds Representative for Desjardins Financial Services Firm Inc.

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Commentaires publiés (2)

Marie-Christine / February 14, 2018 7:30 AM
Hi @Christopher. You can buy RRSP online on AccesD or talk to an expert to get quick access to the help and advice you need. Service is available at the following times: Monday to Friday 8:00 a.m. to 9:00 p.m. Saturday and Sunday 8:00 a.m. to 6:00 p.m. Outside these hours: AccèsD Internet users Use the AccèsD message box. Non-users Email us: https://services.desjardins.com/courriel/courriel.nsf/all/F57A91A10359F474852582340044B979?EditDocument&al=6548 Have a nice day - Marie-Christine
Christopher malone / February 13, 2018 10:24 PM
I would like to apply for the RRSP

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