This Government-assisted savings vehicle provides a new way to save for the future for individuals or families who are affected by disability. According to Statistics Canada, more than 1.7 million Canadians are impacted. The RDSP can play a critical role in helping create financial security for eligible Canadians with disabilities. Contributions can be invested and grow tax deferred, and the Federal Government offers generous grants and bonds to help beneficiaries accumulate long-term savings.
In the year you turn 71, you must close down your RRSP and choose from a number of investment options. One choice is starting a Registered Retirement Income Fund, which allows interest, capital gains and dividends to compound on a tax-deferred basis.