How can an RRSP, TSFA or RRIF help me save for retirement?

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TFSA

Description

  • A Tax Free Savings Account (TFSA) lets you grow your savings and access your money tax-free.

Age limits

  • Minimum age of 18
  • No maximum age

Contribution limits

  • Contribution limit for 2018 is $5,500
  • Unused contribution room is carried over indefinitely
  • Contributions are not deductible
  • The penalty for over-contribution is 1% on the excess amount each month

Withdrawals

  • You can withdraw money from your TFSA at any time, tax-free
  • The amount you withdraw is added to your contribution room for the following year
  • Withdrawals don't affect your eligibility for federal income-tested benefits such as Old Age Security, Guaranteed Income Supplement, Canada Child Tax Credit, GST Credit, etc.

Eligible investments

  • Empire Life products such as Guaranteed Investment Funds, Class Plus 3.0 and Guaranteed Interest Contracts

Read more about investment solutions for your TFSA ›

RRSP

Description

  • A Registered Retirement Savings Plan (RRSP) lets you build tax-deferred retirement savings
  • Also available as locked-in for pension proceeds

Age limits

  • No minimum age
  • You must close your RRSP by December 31 of the year you turn 71. Most people convert it to a RRIF (Registered Retirement Income Fund) or purchase an annuity.

Contribution limits

  • You must have employment income and have filed a tax return
  • Contribution limit for 2018 is 18% of earned income to a maximum of $26,500
  • Unused contribution room can be carried over
  • Check your Notice of Assessment from Canada Revenue Agency for your limit
  • Contributions are deductible from your taxable income

Withdrawals

  • You can withdraw from your RRSP at any time (provided your RRSP is not locked-in)
  • Withdrawals are added to your income in the year of withdrawal and tax is withheld at source

Eligible investments

  • Empire Life products such as Guaranteed Investment Funds, Class Plus 3.0 and Guaranteed Interest Contracts

Read more about investment solutions for your RRSP ›

RRIF

Description

  • A Registered Retirement Income Fund (RRIF) lets you convert your retirement savings into retirement income and your investments grow tax-sheltered until you make a withdrawal

Age limits

  • Minimum age of 65
  • No maximum age as RRIF is designed to provide you with income for the rest of your life (or until it runs out of money, whichever happens first)

Contribution limits

  • You can transfer your RRSP into a RRIF, or you can transfer in another of your RRIFs
  • You cannot make contributions to a RRIF as it is designed to be a source of income when you retire

Withdrawals

  • You must withdraw at least the minimum prescribed by Canada Revenue Agency but you can also set higher payments to suit your lifestyle

Eligible investments

  • Empire Life products such as Guaranteed Investment Funds, Class Plus 3.0 and Guaranteed Interest Contracts

Read more about investment solutions for your RRIF ›

Want to learn more? Click on a subject below

1 Making an excess withdrawal may decrease your guaranteed retirement income for life amount.

2 An annuity is an insurance contract where in exchange for a one-time deposit, you will receive guaranteed income payments from Empire Life. The amount of income you receive depends on a variety of factors including the amount you deposit, current interest rates, your age and the type of annuity you choose. Once an annuity has been purchased, the funds cannot be withdrawn.

3 Subject to the terms of your insurance contract.

A description of the key features of the individual variable insurance contract is contained in the Information Folder for the product being considered. Any amount that is allocated to a Segregated Fund is invested at the risk of the contract owner and may increase or decrease in value.

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