IFIC is commending the recommendation published by the House of Commons Finance Committee in their pre-budget report, which strongly urges that the Federal Government to raise RRSP and RPP contribution limits from the current limit of $13,500 to $19,000 in the next federal budget.

“We welcome this long overdue increase in the allowable limits for registered plans and commend the Finance Committee for recognizing that average, middle-income Canadians are also affected by registered limits, but would like to see it increased even further in the near future,” says Tom Hockin, IFIC President & CEO.

“It is evident that RRSP savings will be a boon to the federal government for many reasons. Namely, withdrawn funds are taxable and therefore government income will increase. Further, it will lessen the burden on GIS and OAS. The impacts of these will only be magnified when baby boomers begin to withdraw funds from their registered accounts for retirement in the coming years,” he says.