An RRSP is short for Registered Retirement Savings Plan. An RRSP allows you to save money for your retirement that you'll need later, as well as get a tax reduction now. With an RRSP, you also don't pay any taxes on the interest you accumulate until you start withdrawing the money.

There are many advantages to saving money for retirement in an RRSP. There are immediate tax savings, tax-deferred compounding, retirement tax savings, and many other benefits.

The most important thing about your RRSP investments is that you do it. The earlier you start to get your money working for your retirement, the more your money will work for you.

To illustrate exactly why it's so important to make an RRSP contribution every year, and to get started as soon as possible, see the chart below to see how far investing only $100 a month in your RRSP can turn into a retirement savings that far outweighs what you put into it. That's the power of compounding interest!

You need an RRSP because it is the best tool you have to save for your retirement. By starting early and using Meridian's secure RRSP investments, you are guaranteeing that you will have the money you need to have the lifestyle you want when you retire.

It's important to understand that investing in RRSPs does not require you to invest huge sums of money, or to invest more money than you are comfortable with. It is about having a plan, about knowing that you are putting away money now that will work for you for in 5, 10, 15, 20, or 30 years until you need it.

Investing in RRSPs also provides an immediate benefit of reducing the amount of payable tax you owe. As well, the earnings on your investments are not taxable until you start pulling income from them.

As soon as possible. Don't worry if you don't have thousands of dollars to contribute. Even as little as $100 a month can have a huge impact on the amount of money you'll have when you retire. Check out the chart below to see what that $100 a month, invested consistently over time, will save you for your retirement:

To figure out how much you can afford to put into your RRSPs, and to map out a plan for the future that gets you where you want to be faster, talk to a Meridian financial Coach today.

You need to look for the plan that has the best potential return for the risk you are prepared to take. How much risk you are willing to take usually depends on how long it will be until you need the money. If your answer is ten years or more, then you are a good candidate for a higher risk RRSP.

If there are fees involved, take them into account by comparing the anticipated annual growth. Make sure to ask about all fees when you discuss your investment plans with your Meridian Financial Coach.

If you prefer a short term investment, look for a plan that you can terminate quickly and at little to no cost.

Don't necessarily only look at the interest rates. Make sure to ask for the net annual yield - the more you know about your RRSP the better.

At Meridian Credit Union, registered savings plans are fully insured with no limit on the maximum amount (RRSP, RRIF, LIF, RESP, TFSA).

For further information on deposit insurance coverage, please call DICO at 1-800-268-6653 or www.dico.com.

Note that mutual funds are not insured.

Anyone who has earned income in Canada and paid taxes on it is eligible for an RRSP.

Contributions can be made until the end of the year in which your 71st birthday occurs.

Under the Income Tax Act you can transfer your RRSP between any issuer at anytime tax free. However, depending on whether your RRSP investment is non-redeemable, the issuer may not permit a transfer until the term expires. The transfer must also be direct, from one issuer to the other.

Contributions to an RRSP and the accumulated earnings are tax-sheltered (meaning you don't have to pay taxes on them) until the funds are withdrawn. Funds in most RRSPs can be withdrawn in whole or in part, depending on the original conditions at the time the RRSP was established (there may be restrictions on when you can do it, i.e. once a year, or only after a certain period of time.) However, once you withdraw the money, it is taxable and will be reported on a T4RSP by the issuer of your plan.

The rate of withholding tax varies, depending on the amount withdrawn. Revenue Canada requires all provinces, except Quebec, to apply the following schedule:

Amount of Withdrawal	Rate of Withholding Tax
$5,000 or less	10% of withdrawal
$5,001 to $15,000	20% of withdrawal
$15,001 and over	30% of withdrawal

The Home Buyers' Plan is to only be used by those who are first-time home buyers.

Each eligible RRSP holder can withdraw, without immediate taxation, up to $25,000 to be used as part of a down-payment for a qualifying residence. Income tax will not be paid on any portion of the withdrawal repaid to an RRSP before or during the 15 year repayment period. The repayments will not be tax deductible.

A Registered Retired Income Fund (RRIF) is similar to a continuing RRSP, with the exception that you must take the minimum taxable payments from it.

Funds can be transferred to a RRIF from an RRSP, another RRIF, a Registered Pension Plan, a Deferred Profit Sharing Plan or a commuted RRSP annuity.

A RRIF can continue for the lifetime of the holder or their spouse.

For more information on minimum payments please contact your branch or call 1-866-592-2226.