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Get More from Your Investments

Whether you’re building up or winding down your investments, there are several ways to grow your retirement savings, reduce taxes and make the most of your money.

Enjoy Tax-smart Investing

Treat your money to a tax break with the following registered plans.

Save for Retirement with an RRSP

With a Registered Retirement Savings Plan (RRSP), you can save for retirement and reduce the taxes you pay while you’re still working. You can contribute to an RRSP through December 31 of the year you turn 71.

  • Pay Less Income Tax Now
    Your annual RRSP contribution can be deducted from your total income, reducing the amount of income tax you pay in a year.
  • Defer Tax on Investment Income
    The income you earn in an RRSP is not taxed so it can grow faster. By the time you retire and withdraw the money, you will probably be in a lower tax bracket.
  • Borrow from Yourself1
    An RRSP lets you withdraw money to buy your first home1 or pay for your or your spouse’s education2 without penalty—as long as you repay this money within a certain amount of time.
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Save for Anything with a TFSA

With a Tax-Free Savings Account (TFSA), you can save for anything—including retirement (although contribution limits do apply). It’s also a great option if you're already retired because you don’t have to earn an income to contribute to it.

  • No Tax on Income
    The income you earn from investments you hold in a TFSA—interest, dividends or capital gains—are never taxed.
  • No Tax on Withdrawals
    Easily withdraw money from the TFSA (depending on your investments) without the investment gains being added to your income for the year.
  • No Income Requirements
    Unlike the RRSP, you don't have to earn an income to contribute to a TFSA. If you’re retired, you could park RRIF withdrawals in a TFSA until you need them.
  • Keep Your Contribution Room
    In addition to the annual contribution limit, your unused contribution room is carried forward indefinitely. Plus, withdrawals are added back to your contribution room the following year.
  • Hold the Plan for Life
    Keep your TFSA as long as you live. Unlike the RRSP, you won't have to close it at age 71.
  • Keep Federal Benefits
    The income you earn in a TFSA and your withdrawals don't affect your eligibility for Federal income-tested government benefits or tax credits.
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Make the Most of Your Savings with a RRIF

Think of a Registered Retirement Income Fund (RRIF) as an extension of your RRSP, but instead of putting money in, you withdraw from it to use throughout retirement. It’s one of the more popular options when converting an RRSP.

  • Put Off Paying Tax on Investment Income
    Similar to an RRSP, your money continues to grow tax-sheltered in a RRIF.
  • Control When to Take Income
    You get to decide when and how much to withdraw as long as you take the required minimum amount.
  • Transfer Your RRIF Tax-Free
    When you pass away, the funds in your RRIF can transfer to your spouse, tax-free.
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Crunch the Numbers

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Retirement Cash Flow Calculator

Compare your income and expenses to see if you come up short.

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RRSP Calculator

See how putting money regularly in an RRSP can grow your retirement savings.

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RRIF Calculator

Estimate the minimum withdrawal you could receive from your RRIF.

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Financial planning services and investment advice are provided by Royal Mutual Funds Inc. (RMFI). RMFI, RBC Global Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities which are affiliated. RMFI is licensed as a financial services firm in the province of Quebec.
The content of this publication is provided for informational purposes only and is not intended to provide specific financial, investment, tax, legal, accounting or other advice for you, and should not be relied upon in that regard. All charts, illustrations, examples, case studies and other demonstrative content are general and have been provided in this publication for illustrative purposes only. The case studies included do not represent actual events or real individuals. While efforts are made to ensure the accuracy and completeness of the information at the time of publication, errors and omissions may occur. Readers should consult their own professional advisors when planning to implement a strategy. This will ensure that individual circumstances have been considered properly and that action is taken on the latest available information. Interest rates, market conditions, tax and legal rules and other investment factors are subject to change.
You can withdraw up to $35,000 from your RRSP to buy your first home under the Home Buyers’ Plan. The funds must have been on deposit at least 90 days before you withdrew them, and a signed agreement to buy or build a qualifying home is required. At least 1/15 of the funds must be repaid each year, beginning two years after the funds were withdrawn. For details see Canada Revenue Agency Home Buyers’ Plan.
Under the Lifelong Learning Plan, you can withdraw up to $10,000 per calendar year for your own or your spouse's full–time training or post–secondary education. The total amount that can be withdrawn is $20,000 each with withdrawals over a maximum of four consecutive years. At least 10% of the amount borrowed must be repaid each year, over a maximum period of 10 years.