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RRSP Draw Down

Contributors to the Registered Retirement Savings Plan (RRSP) on average have a perception that the more they put into their RRSP, because of its tax-deferral function, the better it is. However, when it is time to withdraw from their RRSP, some clients would realize that a deferred tax bill has accumulated, some even as large as close to half of their total RRSP amounts.

The consequences? A high tax bill, exacerbated by negative effects on old age benefits from the government.

The remedy? Manage your finances diligently from an early start. Tax Free Savings Accounts for example can help alleviate the tax burden. Other solutions include using non-registered products. Ask a Grandtag Financial advisor to help you weigh the pros and cons on different solutions to assess the best overall plan for your retirement savings.