RDSP (Registered Disability Savings Plan)

The Registered Disability Savings Plan (RDSP) is a Canada-wide savings plan designed for people with disabilities. Key features include:

• Canada Disability Savings Grant: For family incomes below $114,750, the government matches contributions up to $3 for every $1 deposited.
• Canada Disability Savings Bond: For incomes under $37,487, the government provides $1,000 annually for 20 years. Partial bonds are available for incomes between $37,487 and $57,375.
• Open Contributions: Anyone-family, friends, or others-can contribute to an RDSP.
• Investment Growth: Contributions can be invested, offering high returns. Low-income savers may see their money triple instantly, with further growth through investments.
• Exempt from Clawbacks: RDSP funds are generally exempt from provincial disability and income assistance reductions.
• Flexible Withdrawals: There are no restrictions on how withdrawn funds can be spent by the beneficiary.

To qualify for the Registered Disability Savings Plan (RDSP), you must:

• Obtain a Social Insurance Number (SIN).
• Be approved for the Disability Tax Credit (DTC) and, if applicable, the Canada Child Tax Benefit for children under 19.
• File your income tax returns.
• Designate a Holder to manage financial decisions.
• Be 60 years old or younger.

Availability

For the most current information on participating institutions, contact us for more details or research options to find the financial institution that best meets your needs.

Provincial/Territorial Implications - Disability Benefits

In many provinces and territories, individuals eligible for disability benefits face restrictions on accumulating assets or receiving income, which can limit their ability to save for future financial security. These restrictions may result in disqualification from benefits or clawbacks of funds.

To address this, we advocate for all provinces and territories to fully exempt the RDSP from asset and income tests used to determine eligibility for disability benefits. If RDSP funds are not exempt, individuals may hesitate to open an RDSP, as withdrawals could reduce or eliminate their disability benefits, undermining the plan's purpose.

Join Punjab Insurance in Celebrating the International Day of Persons with Disabilities

At Punjab Insurance, we believe that everyone deserves equal opportunity, dignity, and security - regardless of ability. This International Day of Persons with Disabilities, we are committed to spreading awareness about disability inclusion and empowering Canadians with disabilities to secure their future.

Disability can impact anyone, at any stage of life. Having the right awareness and protection in place means peace of mind for you and your loved ones. Our Disability Inclusion Strategy is designed to raise awareness, remove barriers, and ensure that people with disabilities are supported not just financially, but socially and professionally.

Why Disability Insurance Matters

• Income Protection: Safeguard your earnings if illness or injury prevents you from working.
• Peace of Mind: Ensure your family's financial stability during unexpected life events.
• Inclusion & Support: Take part in a growing movement advocating for equity and accessibility.

Together, We Can Make a Difference

By joining this initiative, you're becoming part of a movement to build a more inclusive Canada. Fill the form to know about Canada disability savings grant.