RRSP planning as your savings grow

As your income grows and your priorities change, the role your RRSP plays in your financial plan will likely change too.What worked when you were just getting started may not be the right fit as you build momentum, juggle new goals, or start thinking more seriously about retirement. RRSP planning isn’t about finding one “right” answer. It’s about understanding your options and making informed decisions that fit your life today, while keeping an eye on tomorrow. Whether you’re building momentum, fine-tuning your strategy, or thinking ahead to retirement, understanding how your RRSP fits into your broader plan is key.

Below are answers to common RRSP questions we hear from members who may be further along in their savings journey.

Are RRSPs really worth it if withdrawals are taxed?

Yes, and for many people, RRSPs remain a powerful planning tool.
A common misconception is that RRSPs aren’t worthwhile because withdrawals are taxed. In reality, RRSPs are designed to help you save during your higher-income years and withdraw funds later, when your income (and tax rate) is often lower. Used thoughtfully, this can reduce the total tax you pay over your lifetime.
Because everyone’s situation is different, it’s always a good idea to speak with an advisor about how RRSPs fit into your broader tax and retirement strategy.


Should I be saving in an RRSP or a TFSA?

That depends on your income, goals, and where you are in life.
RRSPs are often more effective when your income is higher, and your focus is long-term retirement savings. TFSAs can offer more flexibility for shorter-term goals or future spending needs. Many members use both, adjusting how much they contribute to each as their circumstances change 
An advisor can help you decide how to balance these accounts based on what you’re working toward.


What types of investments can I hold in my RRSP?

RRSPs are flexible and can hold a variety of savings and investment options, including variable savings, GICs, mutual funds, stocks, and bonds.
The right mix depends on your goals, time horizon, and comfort with risk. What makes sense for someone building wealth may look quite different from someone preparing to draw income in retirement. We recommend you meet regularly with a wealth advisor to review your plan and if needed, adjust it based on your needs and goals. 


Should my investment mix change as I get older?

Yes.As life changes, whether that’s a new job, a growing family, or retirement on the horizon, it’s wise to review your investment mix
Many people gradually shift toward more stable options as retirement approaches, such as Guaranteed Investment Certificates (GICs), high-interest savings accounts, government bonds, or conservative mutual funds. These options typically offer lower risk and more predictable returns, but there’s no one-size-fits-all approach. Not all of these options may be right for you. The best choice depends on your personal circumstances, including your goals, time horizon, and comfort with risk. Consider reviewing your plan regularly with a financial advisor or after major life events to ensure your plan continues to aligns with your goals.


What factors influence the right investment mix?

When it comes to investment mix, your age, income, time until retirement, and financial priorities all play a role in determining the best mix of investments at any given time. 
For example, someone using an RRSP to help buy their first home may invest differently than someone focused on creating retirement income. Ongoing conversations with an advisor help ensure your strategy continues to reflect what matters most to you.


Is there an age limit for contributing to an RRSP?

Yes. You can contribute to your own RRSP up until December 31 of the year you turn 71.
If you have a younger spouse, you may be able to continue contributing to a spousal RRSP until the end of the year they turn 71, allowing for continued tax-deferred savings as a couple.


What happens to my RRSP when I retire?

By the end of the year you turn 71, your RRSP must be converted into a retirement income option, such as a Registered Retirement Income Fund (RRIF), an annuity, or withdrawn as a lump sum (which is taxable).
Planning ahead can help ensure this transition supports the income and lifestyle you want in retirement.


What is a RRIF and how do I use it?

A Registered Retirement Income Fund (RRIF) is an account you convert your RRSP into by the end of the year you turn 71. It allows you to keep your investments growing tax-deferred while drawing income during retirement.


What happens if I don’t use all my RRSP contribution room?

Unused RRSP contribution room doesn’t disappear. It carries forward indefinitely, giving you flexibility to contribute more in future years when it makes sense for your income and goals.


How do spousal RRSPs work?

A spousal RRSP is typically used when one partner earns significantly more than the other.
The higher-income partner contributes to the plan, receiving the tax deduction, while the RRSP itself is registered in the lower-income partner’s name.This can help balance retirement income between partners and potentially reduce taxes over time. There is a three-year attribution rule to be aware of, so it’s important to understand how withdrawals are taxed and to plan carefully.


Can I withdraw money from my RRSP before retirement?

Yes, but it’s important to understand the implications.
RRSP withdrawals are taxable and subject to withholding tax, and the amount withdrawn is added to your income for the year. This can increase the tax you owe and reduce the savings available for retirement.
There are specific programs that allow withdrawals for certain life goals such as the Home Buyers’ Plan and Lifelong Learning Plan. 


What are the Home Buyers’ Plan and Lifelong Learning Plan?

These are government programs that let you temporarily withdraw money from your RRSP tax‑free to help with major life goals.

The Home Buyers’ Plan (HBP) allows eligible first-time home buyers to withdraw up to $60,000 without penalty from their RRSP to buy or build a home. These funds must be repaid over time to avoid being taxed. Currently, you have up to 15 years to repay the amount you withdrew. Under the program, your repayment period starts the second year after your first withdrawal from your RRSP. 
 
The Lifelong Learning Plan (LLP) allows you to withdraw up to $10,000 a year and $20,000 maximum from your RRSP funds, tax-free to support full-time education or training for you or your spouse. Repayment of these funds is also required but unlike an HBP, you have 10 years to pay back your withdrawal. 

Both programs can be helpful tools when used thoughtfully as part of a broader plan.


How can I make the most of my RRSP contributions?

One way to make the most of your RRSP contributions is to explore tools that can help you top up your savings when the timing is right.

If you have unused contribution room, some members explore tools such as a Registered Investment Link Line to access funds when they’re ready to invest. SCU offers a Registered Investment Link Line as one of the options within our Equity Link Line lending products. It is designed to help members catch up or top up their registered investments, such as RRSPs, using a revolving line of credit. This approach isn’t right for everyone and works best when considered carefully within your overall financial picture. An advisor can help you assess whether this strategy aligns with your goals and comfort level.


How do I know how much I’ll need for retirement?

Retirement calculators can provide helpful estimates by factoring in your age, income, and retirement goals.
These tools don’t replace advice, but they can be a useful starting point for planning and for conversations about your future. Try our retirement income and savings calculators to determine your retirement savings income.


Planning that grows with you

RRSP planning isn’t about having everything figured out—it’s about having a plan that evolves as your life does. Whether you’re building on years of saving or refining your approach for retirement, the right advice can help you move forward with confidence.


Start the conversation.