RRSP / Spousal RRSP
A Registered Retirement Savings Plan (RRSP) or Spousal RRSP is a registered account designated for retirement savings.
RRSPs are available to investors under the age of 71, provided that they have earned income and a Social Insurance Number. Please contact our Investment Funds Centre if you want to open an RRSP for a minor.
RRSP accounts benefit from advantageous tax treatment if held to retirement age.
When the owner of an RRSP reaches the age of 71, the RRSP must be closed. Many investors then choose to transfer their RRSP assets to an RRIF (Registered Retirement Income Fund) or a spousal RRIF.
LRSP (Locked-in Retirement Savings Plan) Account or LIRA (Locked-in Retirement Account)
If you leave an employer before you have reached retirement age, you may have to transfer the assets in your employer-sponsored Group Retirement Savings Plan (GRSP) or pension plan to a Locked-in Retirement Savings Plan. Depending on the applicable provincial pension legislation, this plan may be called an LRSP or a LIRA.
A note on GRSPs (Group Retirement Savings Plans)
You may already hold units of PH&N Funds or RBC Funds investment funds through your employer-sponsored Group RSP or other pension plan. In this case, you do not have an individual account with PH&N Investment Services. Upon leaving your employer, either at the age of retirement or before, you will have to decide what you would like to do with your pension assets. At that time, PH&N Investment Services will be pleased to advise you on the choices available to you and the regulations that will affect your choice.
You retain control over how your LIRA or LRSP is invested, subject to specific restrictions under the Income Tax Act.
Until you reach retirement age (as specified by your original pension plan), you are not permitted to draw on these funds. If you wish to receive income from the plan, you may be eligible to transfer the assets to another acceptable locked-in vehicle that can pay out income, such as an LIF (Life Income Fund) or an LRIF (Locked-in Retirement Income Fund). In any case, when you reach the age of 71, you must transfer the assets from your LRSP or LIRA to a LIF or LRIF.