Fidelity Investments Canada ULC

1 Plan your retirement goals

What kind of lifestyle do you want to live in retirement? Start making goals now, and meet with your financial advisor to ensure your security as you enjoy a long and fulfilling retirement

Planning for retirement income: Five key risks 2 Invest early for compound growth

Investing in your RRSP well in advance of retirement means that your money has more time to benefit from tax-sheltered growth

3 Leverage your tax refund

As tempting as it might be to spend your tax refund, reinvesting it will work to your long-term advantage to reach your retirement goals

4 Contribute now, deduct later

You don’t have to claim deductions on your RRSP contributions in the same year that you make them If you are expecting a future increase in taxable income that will push you into a higher tax bracket, you can defer claiming deductions until a later year to benefit from a higher tax refund

5 More room to invest in your future

Unused contribution room can be carried forward indefinitely to use in future years

6 Develop RRSP withdrawal strategies

Reaching age 71 triggers the maturity of your RRSP You must convert your RRSP into a Registered Retirement Income Fund (RRIF), or annuity, or lump sum payout by the end of the calendar year in which you turn age 71 RRIF minimum withdrawals start the year after the RRIF is established

Depending on your short- and long-term goals, investing in a Tax-Free Savings Account (TFSA) might be an option to also discuss with your financial advisor

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RRSP and tax FAQ