What is an RRSP?

A Registered Retirement Savings Plan (RRSP) is a government approved plan that enables you to save money for your retirement. RRSPs give you security knowing that you will have a head start on your retirement savings. Although you may receive government benefits while in retirement, additional income is often needed to help pay for life's pleasures. Annual contribution limits are based on your previous year's earned income.

An RRSP accumulates invesment returns tax-free and contributions reduce annual taxable income. They can also be accessed to purchase a home through the Home Buyers' Plan or for further education (Lifelong Learning Plan).

A few other things to know:

- Annual contribution limits apply
- Unused contribution room can accumulate
- Tax is deferred
- Withdrawals will be included as taxable income for that tax year
- RRSPs must be collapsed by the end of the year you turn age 71

Your contributions are tax deductible and income is tax sheltered until you remove funds from your plan. Early withdrawals (before retirement) will be subject to a withholding tax, which is taken by ECU at the time of the withdrawal and paid directly to the government on your behalf.

What we offer

At ECU we offer Individual RRSPs and Spousal or Common-Law Partner RRSPs.

With an individual account, the account is in the name of the contributor. With a Spousal or Common-Law RRSP, the contributor gets the tax deduction, but the money is now owned by the other spouse/partner.

ECU offers the following investment options for your RRSP:

High Interest Savings Account:

To help your retirement savings grow faster, consider setting up regularly scheduled automatic transfers from another account into your High Interest Savings RRSP. This account remains open and withdrawals can be made at any time

Guaranteed Investment Certificate (GIC):

You can invest in a GIC for a term of 1 to 5 years. Withdrawals/changes can be made only at time of maturity.

Our partner Credential Asset Management Inc. can assist you in investing in mutual funds. Through our online brokerage partner Qtrade Investor, you can invest in mutual funds, stocks and other securities.

Contact us today for more information or to start investing.

Mutual funds are offered through Credential Asset Management Inc. Online brokerage services are offered through Qtrade Investor, a division of Credential Qtrade Securities Inc.

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