Tax-free lump sum option

One of the benefits of building up your RSP Account is that you have the option of taking a tax free lump sum. It is yours to spend or invest as you wish and as the name implies is paid without deduction of tax.

Whilst the exact amount of your tax-free lump sum will be confirmed to as you go through the retirement process, and may depend on benefits you have from other pension arrangements, as a general rule of thumb you can take up to 25% of your RSP Account as a tax-free lump sum. Note that taking a tax-free lump sum from your account will reduce the amount available to provide an income.