Marketplace examines RRSPs in 1976
Retirement is still a long way off for many Canadians in 1976. But judging by the previous year's collective RRSP contribution of an estimated $1 billion, a lot of them are planning for it. RRSPs are not the only way to put aside money for those golden years, though, and they may not be the best way for many people. This animated segment from CBC-TV's Marketplace examines why the laws around cashing in retirement savings at age 71 might mean consumers are being shortchanged.
• Until 1957, only those Canadians with an employer-sponsored pension plan could take advantage of tax benefits when saving for retirement. Doctors and lawyers, who were self-employed, lobbied the government to change the tax law so that they, too, could make tax-deductible pension contributions. That year, the federal budget included an amendment to the Income Tax Act that would allow any Canadian to put aside money in their own retirement savings plans.
• According to Statistics Canada, RRSPs were not quick to catch on. In 1968, then years after the program began, just one of every 50 tax filers made RRSP contributions; by 1987, the number had climbed to more than one of every five.
Broadcast Date: Oct. 24, 1976
Hosts: George Finstad, Joan Watson
Last updated: May 1, 2013
Page consulted on May 1, 2013
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