Over 55? Your RRSP Contribution Could Backfire in Retirement

In this episode of the AskTMFG Podcast, Financial Advisor Carlo Cansino explores an important question many Canadians face as the RRSP deadline approaches: should you still be contributing to your RRSP after age 55? While RRSPs are often seen as a go-to tax strategy, Carlo explains that the decision becomes more nuanced as retirement gets closer. In your late 50s, RRSP contributions shift from being primarily about saving to managing future taxes and retirement income. Using a simple example, he shows how a $30,000 RRSP contribution on a $130,000 income could generate an immediate $12,000 tax refund. But because RRSP withdrawals are fully taxable, those savings today may simply defer taxes rather than reduce them, especially if retirement income from pensions, CPP, and Old Age Security keeps you in a similar tax bracket. Carlo also walks through six key filters he uses with clients before recommending a contribution, including your current tax bracket, how long your income will remain high, how retirement income sources stack together, and whether a TFSA might provide more flexibility. The key takeaway: the RRSP deadline can create pressure to act, but for Canadians approaching retirement, the real question is whether the contribution improves your long-term tax plan — not just this year’s refund. 👉 Watch the full video episode on YouTube to learn how to evaluate whether an RRSP contribution still makes sense after age 55: https://www.youtube.com/watch?v=Hy95ljV6T2k  Question for our listeners: Are you contributing to your RRSP because it’s part of a strategy, or simply because the deadline is approaching? If you’d like help reviewing how RRSP contributions fit into your retirement tax plan, we’re offering a complimentary portfolio analysis to review your situation and identify opportunities to optimize your plan 👉 https://tmfg.ca/portfolio-analysis/ Follow us on our social channels: LinkedIn: The McClelland Financial Group Facebook: https://www.facebook.com/tmfg.ca Instagram: https://www.instagram.com/themcclellandfinancialgroup_