Invest Smart This RRSP Season
January 28, 2025

Lower fees can help you retire up to 30% richer
It happens every year. The RRSP contribution deadline seems to creep up out of nowhere. Most Canadians know there are substantial income tax benefits to maximizing their RRSP investments before the deadline. But with never any lack of things vying for our attention, and the timer running down, we don’t always take time to question whether our money’s going in the best place.
True, using as much of your RRSP deduction limit as possible is a great way to reduce any income tax you may be owing for the year. With most retirement investments, once you’ve dedicated those funds that’s where they’ll stay until you’re ready to start collecting, so choosing the right place to put your money is crucial. It impacts both the total balance you’ll have to retire with and how fast you’ll be able to get there. Depending on factors as simple as fees, you can stand to retire as much as 30% more wealthy*.
The Real Cost of High Fees
No one wants to pay high fees. But what is a ‘high’ fee? The difference between 1% and 2% might not seem like much on paper. When it comes to long-term investments like retirement savings, though, a single percent can mean a difference of tens of thousands by retirement.
In Canada, it’s not uncommon for investments like mutual funds to have a management expense ratio (MER) upwards of 2%. Over decades of investing, these fees can significantly diminish your nest egg. For example, a contribution of $5/day growing at 8% net return annually over 45 years would accumulate to $811,930 with a 1% fee. However, with a 2% fee, that same investment would grow to only $582,260 – a difference of nearly $230,000. Now imagine the impact on larger balances.
SPP has a target to keep the MER under 1% annually, with an actual average of 0.89% over the last 10 years. Lower fund expense means more of your contributions stay in your account, which earns you more in compound interest and brings your retirement goals closer faster.
A Plan That Prioritizes You
SPP isn’t just another RRSP option. It’s a plan designed for people who value financial stability, tax-conscious planning, and a disciplined approach to saving for retirement. SPP combines the immediate tax benefits of an RRSP with long-term growth potential, all while keeping fees low.
SPP’s strong historical returns and reliable management ensure that more of your money stays with you – not with the advisor or financial institution.
SPP is practical, too. Funds are locked in until age 55, which means they’ll be there for you when you need them most. Think of it as a built-in safeguard against the temptation to dip into your future for today’s expenses.
Act Before the Deadline
Every year, millions of Canadians scramble to maximize their RRSP contributions before the deadline. This year, don’t just follow the crowd. With some forethought and planning, your choices today can have a positive impact on your financial situation tomorrow.
Stop high fees from chipping away at your hard-earned savings. Join the growing number of Canadians who are retiring wealthier with SPP. Take action now. The RRSP deadline is your chance to secure a brighter, more prosperous retirement.
*Based on contributions of $1,875/yr and 8% average net rate of return compounded annually over 45 years. Past performance does not guarantee future results.
Join SPP and invest by the March 3rd RRSP deadline.
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