Retirement Tip: Take Advantage Of Unused RRSP Contribution Room

Why would you take unused RRSP contribution room into retirement?

If you are retiring in 2021 and will take a company pension or the copycat pension, contribute now to your RRSP.

I mean now as in February 2021.

Why? If you don’t use the RRSP room, you lose it.

Consider my new client.

She is retiring in 2021 and will take the copycat pension.

Yes, she does need room available if the insurance company offers her a “cash surplus” BUT she has tons of room.

In fact, she has $125k of RRSP contribution room. This is not uncommon.

Furthermore, 2020 will be her highest income year ever. She may work part time in retirement.

So, her [marginal] tax rate is 2020 is the highest ever.

That is perfect use of the RRSP. Save at a high tax rate and withdraw at a low tax rate.

You need to act now. Remember that by contributing in January or February, you can use the contribution in last year OR this year.

That’s great flexibility. Don’t take unused RRSP room into retirement.


– BRUCE YOUNGBLUD, CFP, CIM

Investment Advisor and Certified Financial Planner


Retiring Soon? Chat With Retirement Planning Experts at Pension Solutions Canada

The team at Pension Solutions Canada specializes in helping you prepare for retirement and protect your assets. Unsure about how your pension contributions affect your RRSP? We can help! Call us at 1-888-554-6661 to get started. Our services are no cost to you.

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Retiring in 2021? Chat with a Financial Planner

Book a free 15-minute Zoom call with Certified Financial Planner, Bruce Youngblud! Ask your questions about defined-benefit pension, retirement planning, or commuted value and get a helpful pension statement analysis. Click below to book a time that works for you.