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Retirement Savings Plan
DCHP-2 (Mar 2013)
n. — Finance, Administration
a savings plan for retirement, short for Registered Retirement Savings Plan.
Type: 1. Origin — This term is a shortening for Registered Retirement Savings Plan, but dropping the attribute registered as implied. Unregistered Retirement Savings Plans are not very common, as evidenced in the 2013 quotation. RRSPs or Registered Retirement Savings Plans are the standard retirement savings method in Canada. Unregistered plans are plans that do not trigger a tax reduction, while registered plans, which are tracked by the government, do yield tax savings. In the North American context, the .ca domain has more than twice the frequency of the US domains (but note that .za shows the highest figure) (see Chart 1).
Quotations
1957
The Income Tax Act (Canada) was recently amended to permit individual taxpayers to deduct from their income, within certain limits, premiums paid for retirement savings plans in 1957 and later years. The savings portion of either a new or an existing life insurance policy may be qualified as a retirement savings plan.
1966
A retirement savings plan is yet another means of providing for personal security in future years, by using the professional investment approach followed by successful businesses and the men who run them.
1978
To judge by the nature of tax breaks given investors it is clear that Canada has no industrial strategy, he added. Rather than incentives to invest in industry, the federal Government has made it advantageous to buy a house, win a lottery, or buy shares in a movie, a drilling fund or a retirement savings plan.
1985
Investment dealers are always looking for new ways to package existing securities so they will appeal to more people. One such innovation is the stripped bond, which investment advisers say is best suited to being held to maturity in a self-administered retirement savings plan.
1993
One way to reduce the income tax you pay is to lower your income through deductions. Certain investments provide tax deductions, which lowers the taxpayer's net income, and yield a fair return. They are known as tax deferral plans because no tax is paid on the investment until it is cashed in. The Retirement Savings Plan (RSP) is the best-known example.
2004
Yesterday, one former director with knowledge of Mr. Grasso's pay packages said that in 1999, just prior to renewing his employment agreement, Mr. Grasso took $10-million out of his retirement savings plan. This amount, which hasn't been previously disclosed, is in addition to the $139.5-million in deferred retirement pay and benefits he has already received, and the additional $48-million he agreed to forgo just before his departure.
2013
It's never too late (or too early) to start thinking about saving for your retirement. Around here, it's something we think about a lot (YOUR retirement, not ours). And that's why we offer you a variety of options to help you save your money. You'll find flexible options, no fees, and high interest.
Please note that when we say "RSP" - we do mean "RRSP". What's the difference you ask? We eliminated one of the R's since that's the way most people say it - RSP. Just another little way we keep things simple. So don't worry, our RSP is indeed a Registered Retirement Savings Plan once it's registered with the Canada Revenue Agency (CRA). And it really does grow.
2016
They're scheduled to discuss a report on the issue at a June meeting, but Finance Minister Bill Morneau is committed to moving forward on enhancing the program, his department said. Kelly, whose group supports a voluntary retirement savings plan, said higher pension benefits would be phased in over 40 years and provide nothing for current retirees.
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