RRSP’s - How Do They Fit into Your Retirement Strategy
Planning for retirement is an exciting step to take towards your future! It means you’ll finally have the free time to get back to that hobby you haven’t had time for, spend more time with your family, or travel and explore new places. After a lifetime of hard work, you’ve earned your retirement, but will you be financially prepared? Investing in an RRSP can ensure you’ll have financial freedom during your golden years.
What is an RRSP?
An RRSP, or Registered Retirement Savings Plan, is an investment specifically designed to help Canadians save for their retirement. RRSP’s are available to Canadians of any age that have employment income and file tax returns. They are available to stay open until the account holder reaches the age of 71, at which time you can choose to withdraw the total savings as a lump sum (not recommended), convert your RRSP to a RRIF (Registered Retirement Income Fund), or purchase annuities.
Although RRSP’s may not be as flexible as some of their alternatives, they are one of the best ways to save for your retirement because: