Amounts accumulated at your retirement
Any results or calculations displayed by this tool are made available for
information and educational purposes only, and do not constitute financial
or legal advice. The results are approximate and are for reference only.
% of your salary you invest in a VRSP
The contribution ceiling is the same as for an RRSP, i.e., 18% of annual income, up to certain maximum amounts. However, if you participate in the pension fund offered by your employer, your maximum contribution will be reduced by the "pension adjustment" determined by the Canada Revenue Agency and shown on your T4 slip. If your employer contributes, its contributions will also reduce the maximum allowed. Consequently, the more you contribute to your VRSP, the less you can contribute to an RRSP. You will therefore have to keep track of how much you contribute to your RRSP and VRSP to make sure you do not exceed the contribution limit for a registered plan. If you exceed the maximum allowed, a penalty of 1% per month will apply to the excess amount.
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Income tax
When you withdraw funds from a VRSP, they are added to your income for tax purposes. This tool does not calculate this income tax. The amount payable varies according to your income at the time the funds are withdrawn.
Inflation
Regardless of the investment vehicle chosen, you will feel the impact of inflation, namely, an increase in the general price level of goods and services. The rate of inflation has a negative impact on your investments because it reduces their returns.
This illustration does not take into account tax consequences and