It’s RRSP season

Piggy Bank

The deadline to contribute to your RRSP for the 2020 tax year is coming up quickly - you only have until March 1st, 2022 to make your RRSP contribution for 2021. Making regular RRSP contributions offers both short and long term benefits, so if you haven’t made a contribution yet in 2021 it’s probably in your best interest to do so.

You’re Saving for your Retirement

Unless you’re planning on working forever, you’re going to need a way to fund your retirement. Money put into your RRSP is generally not touched until retirement (unless you take advantage of certain programs such as the First-Time Home Buyer Program), so you’re contributing to your nest egg every time you make an RRSP contribution. Starting early and making regular contributions can have a significant impact on your retirement lifestyle, because the earlier you start, the longer your money has to grow.

If you haven’t started saving for retirement yet there’s no time like the present. Remember, when it comes to retirement the best time to plant a tree was yesterday but the next best time is today. Cambrian’s financial advisors have years of experience and will work with you to design a retirement plan to meet your needs both now and in the future.

You’ll Save on your Taxes – Twice!

An RRSP is what’s known as a tax-deferred investment. Any contributions you make today are deducted from the income you claim on your taxes, reducing the amount you owe. Making regular contributions during your peak earning years will help keep your tax bill to a minimum while you’re in the workforce.

The reason for this is that when you withdraw funds from an RRSP, they are taxed as income. Since you’ll no longer be earning a salary in retirement you are likely to be in a lower tax bracket when you need the funds in your RRSP, reducing the amount of tax you pay on your retirement income.

It’s important not to think of your tax refund as “free money”, but rather as an opportunity to invest into your RRSP, your TFSA or to pay down some debt.


If you don’t have the money to make a contribution before the 2021 deadline consider setting up a monthly transfer to your RRSP. Even $10 a month will make a difference over time; remember that any amount you’re saving is better than saving nothing!

Check out Cambrian’s Retirement Assessment Calculator to see if you’re on track to meeting your retirement needs.