RRSPs and the Savings of Low-Income Canadians


St. Christopher House




Currently, the design of income-tested benefits, principally the Guaranteed Income Supplement (GIS) for low-income seniors, makes the very common Registered Retirement Savings Plans (RRSPs) an ineffective savings mechanism for lower-income Canadians. The net effect is that several billions of dollars of federal taxes are foregone when invested in the registered retirement savings plans of Canadians. At retirement, the financial benefit of these tax subsidies is largely lost for those seniors with an income low enough to be eligible for the GIS. The purpose of this paper is to analyze options so that low-income Canadians can save for their retirement in a way that does not penalize them financially.

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OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

Contact information

St. Christopher House
588 Queen Street West, 2nd Floor
Toronto, ON  M6J 1E3
(416) 504-3535
(416) 504-3047

Source: Consumer Policy Research Database

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