If you’re a Canadian with a disability, or you care for one, you don't need to be told about the financial challenges that come with it — particularly when saving for the future.
But you'll definitely want to know about the government plan that could bolster your savings account by as much as $90,000 over your lifetime and make a huge difference to your long-term financial security.
It's called the Registered Disability Savings Plan (RDSP) and it's a powerful long-term savings tool for Canadians with disabilities designed to help build financial security — and, in turn, offer greater peace of mind to the people who care for them. Yet, just 17% of Canadians have ever heard of it.
That figure comes from a new Angus Reid survey commissioned by Concentra Trust. A respected provider of registered plans and trusted partner to over 200 Canadian credit unions, Concentra Trust is working to raise awareness of the RDSP so those eligible don't miss out on the opportunity to build long-term financial security.
What's an RDSP?
The RDSP is a registered savings plan introduced by the federal government in 2008 to help Canadians with disabilities save for the future. Like other registered accounts, an RDSP offers a tax advantage – the money in your RDSP can grow without being taxed year after year, which helps your savings build faster over time.
It’s free money for your future
Where RDSPs really stand apart are in the built-in government contributions, which can add up to $90,000 over a lifetime and significantly boost your savings. When that money stays invested, it can grow on top of what it’s already earned over time, helping your savings grow faster the longer they’re left untouched.
Depending on your household income and age when you open your plan, the government may:
- Match your contributions up to $70,000, sometimes adding two or three dollars for every dollar you put in
- Add money up to $20,000 even if you don’t contribute, for low-to-modest-income Canadians
Over time, all of this can add up to $90,000, with the money staying invested and growing until you need it for future years. If you’re an eligible Canadian with a disability, not opening an RDSP is like leaving free money on the table – make sure you’re not missing out.
Why you should open an RDSP now
It’s simple: the earlier you open an RDSP, the more time your savings have to grow and the more you can benefit from government contributions along the way.
For someone with a disability, the RDSP is more than just a way to save money. It’s about achieving financial security and what that money makes possible in your future — from big things like funding accessible renovations in your home and handling emergencies to life's little joys like taking a trip or buying something special.
For caregivers, it means peace of mind that lasts. It's knowing a loved one, whether a child, partner or sibling, has a strong financial future taking shape. In turn, caregivers gain some freedom too, like being able to save for their own retirement or enjoy time together without the constant stress of what's next.
How to open an RDSP
To open an RDSP, you must qualify for the DTC Certificate, have a valid Social Insurance Number (SIN), and be a Canadian resident aged 59 or under by December 31 of the year you open it. If the individual isn’t able to do so themselves, a legal representative or permitted family member can open an RDSP on their behalf if necessary, while a parent can open one for minors.
While many financial institutions offer the RDSP, if you want to open one from the comfort of your home, you can reach out to a reputed provider like Concentra Trust through phone or email. Their experienced team of specialists understands the challenges faced by Canadians with disabilities.
They provide personalized service, geared towards helping the busy and hard-working disability community reach their financial goals without having to wait in lines or book in-person appointments.
Credit unions are also a great option — credit unions are deeply involved in their communities and know their members’ unique challenges and experiences. You can look for your local credit union here.
A woman with a prosthetic leg working comfortably from home.Vlada Karpovich | Pexels
Too few Canadians know about the RDSP, but it has the power to make a real difference for people living with disabilities and their families.
Whether you're saving for your own future or helping a loved one plan for theirs, an RDSP could open the door to tens of thousands of dollars in government contributions, deferred tax benefits and long-term financial security.
Concentra Trust, in partnership with local credit unions, is here to help you access the benefits you're entitled to. Find out how to get started by visiting Concentra Trust.
This content is for general informational purposes only and does not constitute financial, investment, legal, tax or accounting advice.