When considering whether or not to make an RRSP contribution, there are several questions you may want to consider:
- What are my retirement goals?
- Am I saving enough for retirement?
- Am I saving enough in general, or am I spending more than I should be?
- What tax bracket am I in, and would an RRSP contribution be beneficial?
- Are you primarily trying to save for retirement or just looking to save some taxes?
- Are you just trying to make sure you don’t owe any taxes come April 30th (tax time)?
An RRSP contribution should be a key part of a well-thought-out long-term savings and retirement strategy, rather than a snap decision to avoid taxes in the short term.
That being said, the personal tax brackets in Canada range from 22% to 54%, so an RRSP contribution can be a great idea for some people.
The answer to whether or not an RRSP contribution is right for you varies from individual to individual and year to year.
If you have any questions about whether an RRSP contribution is right for you, consider contacting McEvoy Lelievre to speak with Kris McEvoy.