Tax-free lump sum
A tax free cash sum of up to 25% of your RSP Account value at retirement.
- Pros: You get a tax-free lump sum of money to spend or invest as you wish. Taking a tax-free lump sum reduces the amount of taxable income that you get each year, so you may pay less income tax.
- Cons: This one-off payment reduces the RSP Account value available to provide your income. The amount of cash you hold in savings may affect your entitlement to some State benefits.