How much should I contribute to my RRSP?
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October 13, 2020
How much should I contribute to my RRSP?
This is a very tricky question because it would be depending on your financial situation. Sometimes, it doesn’t make sense to contribute to making a contribution; this could be because you have low income or you’re paying off a debt that has a high-interest rate. This can raise questions, that if you should open an RRSP account at all. We would advise that you do as the account acts as a savings vehicle and which can help you avoid any type of financial crisis in your golden years. Now, to understand a bit about RRSP and how much you can contribute to it, read on or you can get in touch with Harjinder Sandhu for further details. He would be more than happy to help you.
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Your contributions
Your contributions towards your RRSP account would depend on your income and it would be 18% of your earned income with respect to your last year’s income or $26,230 (the lower amount). If you could not complete the contribution quota in a year, you can pay the extra
amount in the following one. You can find the maximum annual contribution for one Taxation year on the CRA online.
Another benefit of this type of account is, you can withdraw any amount at any time for anything; it can be used for any emergency or you can spend it on a holiday, the choice is up to you. There is one downside though; if you contribute, then you would have to pay 1% surcharges on the extra amount till the total contribution is balanced (you can do this by contributing less in the following month). If you have any queries, you can call Harjinder and get them resolved.
Limit increment
Since its inception in 1991, the upper limit of an RRSP account has been annually revised by the Canadian Government, and as of 2019, the threshold has reached $26,500. It’s advisable to invest 10% of your gross salary in the account, so by the time you retire, you can rest easy and not think much about any type of financial issues. So, what are you still waiting for?
Contact Harjinder Sandhu, and open your RRSP account today!
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Client Testimonials
Nitiksh Srivastava
Harjinder helped me with my life term plan. I was looking to increase coverage of my current term plan and was looking for a cheaper option. Throughout the discussion with him, Harjinder was very transparent with all the plans and the pricing and gave me one of the most competitive price in the market.
Shubhkarman Singh
Mr. Harjinder Sandhu is very much capable for the services he offers. I was in need of personal health insurance for couple of months and he guided me really well and to the point in a very professional way. If any one is in need of Insurance and investment information, do consult Mr. Harjinder Sandhu.
Mehrnaz Sarrafzadeh
I highly recommend Harjinder for any insurance policy you may need. He was very helpful with my new policies. He was very patient during the whole process and provided me with different options, their details and advised me on the best options that fit my needs.
Qin Feng
I am very happy with the service I received from Harjinder. He reached out to me to talk about insurance i have long been considering. Instead of telling his recommendation or listening to my preference directly, he asked me about my needs, analyzed my financial situation, and came up with few options for me to pick.
Jasmeet Singh
Harjinder is very professional to his work. He explained each and every detail of my insurance plan on the phone. Really appreciate his service. He will give you the best plan and advice according to your situation.
Yuvaraj S R
Harjinder is very professional and knowledgeable. I would recommend for all kind of insurance related options.
kanwwar jaireth
Harjinder has been amazing, Saved me money when I switched over and always answers all my questions extremely quick. Thank You
Utkarsh Sahu
Harjinder recommended the best available insurance according to my need. He made the process very smooth for me. No hassle at all. I recommend him.
Shubhkarman Singh
Mr. Harjinder Sandhu is very much capable for the services he offers. I was in need of personal health insurance for couple of months and he guided me really well and to the point in a very professional way. If any one is in need of Insurance and investment information, do consult Mr. Harjinder Sandhu.
