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Reference Library
Retirement Planning

Retirement Savings Plans

In 1957, the federal government introduced the Registered Retirement Savings Plan (RRSP) to provide Canadians with an incentive to save for retirement. And, with the tax advantages they offer, these plans should definitely constitute the backbone of every Canadian's retirement-saving strategy.

Under Canada's tax system, a large portion of income earned over $60,000 is paid as income tax. Even if you are earning a little less, you'll still be paying a significant part of your income in income tax. The benefit of contributing to an RRSP is that the money you contribute to your plan is deducted from your taxable income. For example, if you're in the 40% tax bracket, and you contribute $5,000 to an RRSP, you will have saved $2,000 in tax that year.

But, that's only half the story. With your money now sheltered inside an RRSP, you will enjoy tax-deferred compounding investment returns on the contribution. If you contribute $5,000 each year for 30 years and receive an average return of 8%, your RRSP could be worth $566,416 by the time you retire.

CIBC Wood Gundy offers a variety of retirement savings plan options, including:

  • Self-Directed RRSP
    The hallmarks of a CIBC Wood Gundy Self-Directed RRSP are flexibility, control and broad investment choice.
  • Fund Partner RRSP
    The Fund Partner registered account is designed to provide you with a choice of more than 100 mutual funds with no annual administration fee.
  • Locked-In Registered Plan (LIRA)
    If you have transferred out of a pension plan, we can provide you with the necessary registered vehicle for your investments.

Use our Find An Advisor tool to locate a CIBC Wood Gundy Investment Advisor near you and take the first step to achieving the financial future you want.

The information contained herein is considered accurate at the time of posting. CIBC and CIBC World Markets Inc. reserve the right to change any of it without prior notice. It is for general information purposes only.

Clients are advised to seek advice regarding their particular circumstances from their personal tax advisors.

IIROC. Registered by Investment Industry Regulatory Organization of CanadaCIPF