‘Better late than never:’ RRSP deadline, tax season begin

It’s that time of the year again; tax season has arrived in Canada.

March 1 is the final day people can make contributions to their Registered Retirement Savings Plan (RRSP) and claim them on their 2018 taxes.

Allan Small, senior investment advisor with Hollis Wealth, told the 980 CJME Greg Morgan Morning Show he would like to see a slower RRSP season by having people invest throughout the year.

But he said that doesn’t happen often.

“I still have this last rush or last push to get money into your RRSP so you can write off your contributions for the 2018 tax year,” Small said, noting he will be busy right up to the deadline. “Better late than never,” he said.

Small said more and more people are leaning towards using a tax-free savings account over RRSPs.

He said people like having access to their money and they can now save more than ever in their accounts with lifetime contributions at $63,500. “The amount you can actually contribute to a tax-free savings account is now pretty substantial.”

He said a lot of the younger generation and millennials are using these accounts more and more.

According to Small, a lot more people are living pay cheque to pay cheque and aren’t saving as much as they should be.

“For every dollar the average Canadian makes, they are borrowing up $1.70 now, that’s a little bit of a concern,” he said.

Despite this, he said people are cautiously optimistic because a lot more people are working and their wages have gone up, leading to more disposable income.