Unused RRSP contribution amount could hit $1 trillion by 2018

CALGARY — The total unused RRSP contribution amount in Canada stood at about $500 billion as of 2011 and is estimated to exceed $1 trillion by 2018, says the BMO Financial Group.

In a report released today, the bank’s third annual national Registered Retirement Savings Plan study indicated that an increasing number of Canadians have an RRSP. In Alberta, 69 per cent of people have a plan, just higher than the national average of 67 per cent.

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Tax-free saving account limit to increase

OTTAWA – Savers will get a little extra room to sock away cash in their tax-free savings account (TFSA) next year, as the feds increase the $5,000 annual contribution limit for inflation.

Minister of State for Finance Ted Menzies is expected to confirm Monday that the built-in indexation for TFSAs will kick in for the first time in 2013, taking the maximum contribution to $5,500.

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