Registered Disability Savings Plan (RDSP): Securing Your Financial Future
Building long-term financial security when you have a disability can feel overwhelming. The Registered Disability Savings Plan (RDSP) is a powerful Canadian savings tool designed specifically to help people with disabilities and their families create a strong financial foundation for the future.
Explore Empire Life RDSP
What Is an RDSP?
A Long-Term Savings Plan
The RDSP is a registered savings plan that helps Canadians with disabilities build financial security. Established in 2008, it's designed to provide long-term financial stability through personal contributions, government grants, and bonds.
Unlike other savings accounts, the RDSP offers unique advantages specifically for people with disabilities. Contributions grow tax-deferred, and the government provides generous matching programs to accelerate your savings growth.
To qualify, you must be a Canadian resident under age 60 with a valid Disability Tax Credit (DTC) certificate. The plan remains open until age 59, allowing decades of growth potential.
Family members, friends, and others can contribute to your RDSP, making it a collaborative approach to building your financial future. There's no annual contribution limit, though there is a lifetime maximum of $200,000.
Government Support: Grants and Bonds
The RDSP becomes even more powerful through federal government contributions. Two programs—the Canada Disability Savings Grant and the Canada Disability Savings Bond—can significantly boost your savings without additional cost to you.
Canada Disability Savings Grant
The government matches your contributions with grants up to $3,500 annually. Depending on your family income, you can receive matching rates of 100%, 200%, or 300% on contributions.
The lifetime grant maximum is $70,000, providing substantial growth potential for your savings.
Canada Disability Savings Bond
Even if you can't make contributions, you may qualify for bonds. Low and modest-income Canadians can receive up to $1,000 annually in bonds without contributing anything.
The lifetime bond maximum is $20,000, creating savings opportunities regardless of your current financial situation.
Who Can Open an RDSP?
Eligibility Requirements
  • Canadian resident with valid Social Insurance Number
  • Under age 60 when the plan is opened
  • Eligible for the Disability Tax Credit
  • Named as beneficiary on the plan
Who Can Open It
  • The person with the disability (if legally competent)
  • A legal parent or guardian
  • The beneficiary's legal representative
  • A qualifying family member (under certain conditions)
Who Can Contribute
  • The beneficiary themselves
  • Family members and friends
  • Anyone with written permission
  • Organizations and estates
The Disability Tax Credit (DTC) is the key qualification requirement. If you haven't applied yet, work with your doctor to complete Form T2201. This certification confirms that you have a severe and prolonged impairment and unlocks access to the RDSP and its benefits.
How Empire Life Makes RDSPs Simple
Empire Life specializes in RDSP solutions that make managing your disability savings straightforward and effective. With decades of experience serving Canadians, they understand the unique needs of people with disabilities and their families.
Expert Guidance
Empire Life's advisors understand RDSP rules inside and out. They help you navigate government programs, maximize grants and bonds, and make informed investment decisions aligned with your long-term goals.
Flexible Investment Options
Choose from a range of investment solutions that match your risk tolerance and time horizon. Whether you prefer conservative guaranteed options or growth-focused portfolios, Empire Life offers choices that work for your situation.
Ongoing Support
Your financial needs evolve over time. Empire Life provides continuous support, helping you adjust your strategy as circumstances change and ensuring you're maximizing every available benefit.
Contribution Strategies That Work
Smart contribution strategies help you maximize government matching and accelerate your savings growth. While there's no annual contribution limit, strategic planning ensures you capture the maximum grants available based on your family income level.
For families with net income under $106,717, contributing $1,500 annually triggers the maximum $3,500 grant (at 300% matching). Middle-income families receive 200% matching on the first $1,000 and 100% on the next $1,000. Higher-income families receive 100% matching on the first $1,000.
Consider making contributions early in the year to maximize investment growth time. If you're catching up on unused grant room from previous years, larger contributions can help you claim retroactive grants—up to 10 years of unused entitlements.
Quick Tip
Even small, regular contributions can grow substantially with government matching. A monthly contribution of $125 ($1,500 annually) can trigger $3,500 in grants for low-income families—more than doubling your savings impact.
Understanding Withdrawals and the 10-Year Rule
The RDSP is designed as a long-term savings tool, and withdrawal rules reflect this purpose. Understanding these rules helps you plan effectively and avoid unexpected consequences.
01
Withdrawal Types
Two types of payments exist: Disability Assistance Payments (DAPs) for flexible withdrawals, and Lifetime Disability Assistance Payments (LDAPs) for structured, regular income starting by age 60.
02
The 10-Year Repayment Rule
Grants and bonds received in the previous 10 years must be repaid if you make certain withdrawals. For every dollar withdrawn, you must repay $3 in grants and bonds received during that period.
03
Tax Treatment
Your original contributions come out tax-free (you already paid tax on that money). Government grants, bonds, and investment growth are taxable when withdrawn, but typically at lower rates.
04
Impact on Benefits
RDSP savings and most payments don't affect federal benefits like the Canada Disability Benefit, Old Age Security, or the Guaranteed Income Supplement, helping you maintain support while building assets.
Real-World Impact: The Power of RDSPs
$70K
Maximum Lifetime Grants
Free government matching that triples your contribution power
$20K
Maximum Lifetime Bonds
No contributions required for low-income beneficiaries
$200K
Lifetime Contribution Limit
Combined with grants, total plan value can exceed $290,000
Consider this example: A family contributes $1,500 annually for 20 years ($30,000 total). With maximum grants of $3,500 per year, they receive $70,000 in government matching. Combined with investment growth averaging 5% annually, the RDSP could grow to over $200,000—providing substantial long-term financial security.
For families unable to contribute, government bonds alone could accumulate to $20,000 over 20 years, plus investment growth. This creates meaningful savings without requiring any contributions, demonstrating the RDSP's power for all income levels.
Getting Started: Your Action Plan
1
Step 1: Confirm DTC Eligibility
Work with your doctor to complete Form T2201 (Disability Tax Credit Certificate). This is your gateway to RDSP benefits. The Canada Revenue Agency must approve your application before you can open an RDSP.
2
Step 2: Connect with Empire Life
Reach out to an Empire Life advisor who specializes in RDSPs. They'll help you understand your options, choose appropriate investments, and navigate the application process efficiently.
3
Step 3: Open Your RDSP
Complete the application with your chosen financial institution. You'll need your Social Insurance Number, proof of Canadian residency, and your approved DTC certificate.
4
Step 4: Start Contributing
Make your first contribution and set up a regular contribution schedule if desired. Even small amounts can trigger substantial government grants, accelerating your savings growth from day one.
Take Control of Your Financial Future Today
The RDSP represents one of Canada's most generous savings programs, specifically designed to help people with disabilities build long-term financial security. With government grants and bonds that can triple your contributions, there's no better time to start than now.
Empire Life's specialized RDSP solutions provide the expertise and support you need to maximize this opportunity. Their advisors understand the unique challenges you face and work exclusively to help you achieve your financial goals.
Don't let another year of potential grants and bonds pass by. Every year you wait represents missed opportunities for government matching and investment growth. Take the first step toward financial empowerment today.
Ready to Get Started?
Contact an Empire Life RDSP specialist or explore additional resources through Chamberlain Experior Group to begin your journey toward long-term financial security.

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With 35 years in the insurance industry, I have transitioned back into the industry in the role as Senior Manager with Experior Financial, where I am blessed to be able to take my years of experiance in financial planning, retirement planning, estate planning, product knowledge in the form of : 1) Investments 2) Life Insurance 3) Living Benefits I have the privilege to be able to work with brokers that have chosen to become part of my team and of  Experior Financial. My role is one of helping br

Jim Chamberlain PFP,CEA,CSC
Senior Manager
Unit 195 3015 5Ave NE 
Calgary AB. T2A 6T8
Office: 587.952.2466
Cell: 403.968.6615