Everything you wanted to know about RRSPs (but were afraid to ask)
As the deadline approaches, it’s natural to reflect on how RRSPs fit into your broader financial picture. For some, that means checking contribution room. For others, it means asking whether their current approach still aligns with their life stage, income, and priorities.
To help provide perspective, we spoke with Barry Penner, Senior Wealth Advisor at SCU and Aviso Wealth, about how RRSP saving has evolved and how members can think about it in today’s environment.
Is there still a frenzied lead up to the RRSP deadline?
How Canadians save for retirement has shifted in recent years. Many people now contribute gradually throughout the year, rather than waiting until the annual deadline.“No, people are making contributions on a more regular basis than in the past. They’re contributing on a monthly basis or having money taken off their paycheque every two weeks.”
Barry has seen this change firsthand over his career at SCU. “I’ve been with SCU for 26 years and I remember when we had to set up temporary computer terminals because of the sheer volume of requests for last-minute contributions. Today, shifting saving patterns and improvements in technology and digital banking have made this exercise a part of the past.”
Regular contributions can make saving feel more manageable. At the same time, Barry notes that many households are balancing more competing priorities than in the past. “Even though people are making more regular contributions, rather than making a big lump-sum contribution at the deadline, the concerning thing for me is people aren’t saving like they used to. It’s not as high a priority as it used to be.”
Why saving can feel more difficult today?
Rising costs and financial responsibilities can make it harder to set money aside, even with the best intentions.
“People are overextending themselves financially. They think as long as they’re making their mortgage payment, they’re winning. They often don’t have much outside of that, unless their employer has a pension plan that forces them to make contributions.”
Barry explains that this shift often reflects changes in household cash flow rather than a lack of planning.
“There’s a big gap. People don’t have the cash flow that they used to, and they aren’t putting money aside. It was different 20 years ago because people had money and made it a priority to put it into their RRSPs.”
Recognizing these realities is an important first step. It creates space for conversations about what is possible today, even if circumstances have changed from earlier expectations.
What happens if RRSP savings fall behind?
RRSP savings help support flexibility and choice later in life. When savings are lower than expected, it may influence how and when retirement looks.
“If you don’t have enough saved, you may have to work longer, retire later, or need to take on a second job.”
Barry notes that for many people, retirement planning becomes more tangible during mid-career years, when long-term goals start to feel closer.
“Many people in their 30s, 40s and 50s in time may realize they haven’t saved as much as they had hoped and will discover they don’t have nearly enough to even consider retiring.” For members, this moment often brings clarity rather than alarm. With the help of an advisor, it can be an opportunity to revisit goals, explore options, and adjust plans so they better reflect current realities. Even incremental changes can help improve flexibility over time.
Finding balance between today and tomorrow
Managing present-day expenses while planning for the future is one of the most common challenges members face. Barry points to employer-sponsored plans as one area where small adjustments can make a meaningful difference. “Here’s a strategy that most people don’t think about when it comes to your employer-matched RRSP. If your employer matches your RRSP contributions up to a maximum, ask about increasing the portion you contribute.” He explains how this might look in practice.
“For example, if your employer contributes three per cent, instead of contributing only three per cent yourself, consider instead contributing 10 per cent of your gross income. ”Even without additional matching, this approach can help build consistency. “While you won’t get the dollar-for-dollar matching, you will be contributing pre-tax dollars automatically, making it easier to contribute to your RRSP, and perhaps less noticeable to your bottom line paycheque.”
RRSP or TFSA: how to think about the choice
Both RRSPs and TFSAs can play a role in a long-term plan. Which one comes first often depends on income level, goals, and timing. “If you’re young, working and putting aside money for school, the TFSA is your best option until your income justifies putting money in an RRSP.”
As income increases, tax considerations tend to carry more weight. “When you’re in your higher-earning years, that’s when you want to maximize your RRSP. If you’re making $150,000 or more a year, put money in your RRSP first and your TFSA later.” Barry highlights the long-term tax benefit of this approach. “You want to make your RRSP contributions when you’re in the highest tax bracket and take money out when you’re in the lower tax bracket.”
Saving for retirement while paying down a mortgage
For many households, retirement saving and mortgage payments happen at the same time. “I’m a big fan of having zero debt when going into retirement. You could do a combination of both, especially if you’re in your high-income years.” RRSP contributions can also support other financial goals through tax refunds. “If you put $10,000 into your RRSP and you’re in the 38 per cent tax bracket, you’ll get a $3,800 tax refund that you can put towards paying down your mortgage.”
Should I consider an RRSP loan?
RRSP loans can be useful in limited circumstances, but they are not a fit for everyone. “I don’t recommend this very often and I would be very selective on whether it’s a good idea.” Barry encourages members to look at the full picture. “If you want to do a $10,000 RRSP loan, do the math and figure out what the loan payment would be.” In many cases, building consistency can be more effective than accelerating contributions. “Rather than borrowing the money, take the loan payment amount you would be making and instead contribute that to your RRSP for next year.”
Planning that reflects real life
RRSPs are one part of a broader financial plan that evolves as your life changes. The right approach is rarely about doing everything at once. It is about understanding where you are today and identifying steps that support both current needs and future goals. An SCU wealth advisor can help you review your RRSP strategy, explore how it fits alongside other savings and debt, and create a plan that feels realistic, flexible, and aligned with your life.
Ready to talk it through? Book an appointment with a wealth advisor for guidance that fits your goals and your timeline.
To help provide perspective, we spoke with Barry Penner, Senior Wealth Advisor at SCU and Aviso Wealth, about how RRSP saving has evolved and how members can think about it in today’s environment.
Is there still a frenzied lead up to the RRSP deadline?
How Canadians save for retirement has shifted in recent years. Many people now contribute gradually throughout the year, rather than waiting until the annual deadline.“No, people are making contributions on a more regular basis than in the past. They’re contributing on a monthly basis or having money taken off their paycheque every two weeks.”
Barry has seen this change firsthand over his career at SCU. “I’ve been with SCU for 26 years and I remember when we had to set up temporary computer terminals because of the sheer volume of requests for last-minute contributions. Today, shifting saving patterns and improvements in technology and digital banking have made this exercise a part of the past.”
Regular contributions can make saving feel more manageable. At the same time, Barry notes that many households are balancing more competing priorities than in the past. “Even though people are making more regular contributions, rather than making a big lump-sum contribution at the deadline, the concerning thing for me is people aren’t saving like they used to. It’s not as high a priority as it used to be.”
Why saving can feel more difficult today?
Rising costs and financial responsibilities can make it harder to set money aside, even with the best intentions.
“People are overextending themselves financially. They think as long as they’re making their mortgage payment, they’re winning. They often don’t have much outside of that, unless their employer has a pension plan that forces them to make contributions.”
Barry explains that this shift often reflects changes in household cash flow rather than a lack of planning.
“There’s a big gap. People don’t have the cash flow that they used to, and they aren’t putting money aside. It was different 20 years ago because people had money and made it a priority to put it into their RRSPs.”
Recognizing these realities is an important first step. It creates space for conversations about what is possible today, even if circumstances have changed from earlier expectations.
What happens if RRSP savings fall behind?
RRSP savings help support flexibility and choice later in life. When savings are lower than expected, it may influence how and when retirement looks.
“If you don’t have enough saved, you may have to work longer, retire later, or need to take on a second job.”
Barry notes that for many people, retirement planning becomes more tangible during mid-career years, when long-term goals start to feel closer.
“Many people in their 30s, 40s and 50s in time may realize they haven’t saved as much as they had hoped and will discover they don’t have nearly enough to even consider retiring.” For members, this moment often brings clarity rather than alarm. With the help of an advisor, it can be an opportunity to revisit goals, explore options, and adjust plans so they better reflect current realities. Even incremental changes can help improve flexibility over time.
Finding balance between today and tomorrow
Managing present-day expenses while planning for the future is one of the most common challenges members face. Barry points to employer-sponsored plans as one area where small adjustments can make a meaningful difference. “Here’s a strategy that most people don’t think about when it comes to your employer-matched RRSP. If your employer matches your RRSP contributions up to a maximum, ask about increasing the portion you contribute.” He explains how this might look in practice.
“For example, if your employer contributes three per cent, instead of contributing only three per cent yourself, consider instead contributing 10 per cent of your gross income. ”Even without additional matching, this approach can help build consistency. “While you won’t get the dollar-for-dollar matching, you will be contributing pre-tax dollars automatically, making it easier to contribute to your RRSP, and perhaps less noticeable to your bottom line paycheque.”
RRSP or TFSA: how to think about the choice
Both RRSPs and TFSAs can play a role in a long-term plan. Which one comes first often depends on income level, goals, and timing. “If you’re young, working and putting aside money for school, the TFSA is your best option until your income justifies putting money in an RRSP.”
As income increases, tax considerations tend to carry more weight. “When you’re in your higher-earning years, that’s when you want to maximize your RRSP. If you’re making $150,000 or more a year, put money in your RRSP first and your TFSA later.” Barry highlights the long-term tax benefit of this approach. “You want to make your RRSP contributions when you’re in the highest tax bracket and take money out when you’re in the lower tax bracket.”
Saving for retirement while paying down a mortgage
For many households, retirement saving and mortgage payments happen at the same time. “I’m a big fan of having zero debt when going into retirement. You could do a combination of both, especially if you’re in your high-income years.” RRSP contributions can also support other financial goals through tax refunds. “If you put $10,000 into your RRSP and you’re in the 38 per cent tax bracket, you’ll get a $3,800 tax refund that you can put towards paying down your mortgage.”
Should I consider an RRSP loan?
RRSP loans can be useful in limited circumstances, but they are not a fit for everyone. “I don’t recommend this very often and I would be very selective on whether it’s a good idea.” Barry encourages members to look at the full picture. “If you want to do a $10,000 RRSP loan, do the math and figure out what the loan payment would be.” In many cases, building consistency can be more effective than accelerating contributions. “Rather than borrowing the money, take the loan payment amount you would be making and instead contribute that to your RRSP for next year.”
Planning that reflects real life
RRSPs are one part of a broader financial plan that evolves as your life changes. The right approach is rarely about doing everything at once. It is about understanding where you are today and identifying steps that support both current needs and future goals. An SCU wealth advisor can help you review your RRSP strategy, explore how it fits alongside other savings and debt, and create a plan that feels realistic, flexible, and aligned with your life.
Ready to talk it through? Book an appointment with a wealth advisor for guidance that fits your goals and your timeline.
Start today! Book an appointment
REMINDER! The RRSP deadline for the 2025 tax year is Monday, March 2, 2026. Because March 1 falls on a Sunday, the deadline moves to the next business day.
Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Using borrowed money to finance the purchase of securities involves greater risk than purchasing using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.
REMINDER! The RRSP deadline for the 2025 tax year is Monday, March 2, 2026. Because March 1 falls on a Sunday, the deadline moves to the next business day.
Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Using borrowed money to finance the purchase of securities involves greater risk than purchasing using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.
