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Canada’s RRSP Program Has Too Many Jobs

Summary: Since its inception in 1957, the Registered Retirement Savings Plan (RRSP) has been a cornerstone of Canada’s retirement system. However, the RRSP has taken on roles far beyond its original mandate, notably through the Home Buyers’ Plan (HBP) and the Lifelong Learning Plan (LLP). Although these programs provide short-term benefits, they significantly damage the long-term health of Canadians' retirement savings. This article explores how these additional roles are sabotaging retirement savings, highlights statistics about the state of RRSPs today, and discusses the disastrous impact these trends will have on future retirees. If you’re 55 and wondering whether your RRSP is on track, the latest numbers may surprise you. Recent data suggest that the average Canadian aged 55 has approximately $180,000 in their RRSP. But averages can be misleading because a relatively small number of very large accounts pull the number higher. A better measure of what most Canadians have actually saved is the median RRSP balance, which sits at approximately $146,000. In other words, half of Canadians have saved less than that. Even after decades of tax-assisted saving, these balances are unlikely to generate the retirement income most Canadians will need. That raises an important question. How did one of Canada’s most successful retirement savings programs produce such modest results? Part of the answer may be that we’ve quietly asked the RRSP to do far more than it was ever designed to do The average senior aged 65 in Canada receives $19,547 per year from OAS and CPP. If qualified for GIS, they would receive another $13,478 annually, for a total of $33,025 annually. This isn't much income, especially for homeowners who must pay for property taxes, utilities, upkeep, and maintenance. How it All Began At inception, the RRSP was called a Registered Retirement Annuity and was created in 1957. At the time, Canadians could contribute up to 10% of their income to a maximum of $2,500 annually. The goal was to give all Canadians the same tax benefits as members of registered employer-sponsored pension plans. Benefits of the RRSP Plan 1. Tax-Deferral: Contributions to an RRSP are tax-deductible, which can reduce your tax bill. 2. Tax-Free Growth: Your savings grow tax-free while the money is in the plan. 3. Retroactive: You can carry forward any unused contribution room to future years. The Multitasking Disaster Studies show that people are dreadful at multitasking; the same is true of government programs. Here is where the program went wrong. In 1992, the Home Buyer’s Plan (HBP) was made more flexible, which allowed first-time homebuyers to withdraw RRSP funds to buy a house. Then, in 1999, the Lifelong Learning Plan (LPP) was introduced, which permitted withdrawals to pay for education. The Home Buyers' Plan (HBP) was not introduced in 1957 alongside the Registered Retirement Savings Plan (RRSP) creation. Instead, the HBP was introduced in 1992 as a federal initiative to help Canadians buy their first homes by allowing them to withdraw funds from their RRSPs without tax penalties as long as they met specific conditions. Here's a timeline of crucial HBP withdrawal limits since its inception: Timeline of HBP and LLP Withdrawal Limits: 1992 - Introduction of the HBP • Maximum Withdrawal Limit: $20,000 per individual. • Purpose: To help first-time homebuyers purchase or build a home. 1999 – Introduction of Lifelong Learning Plan (LLP) • The annual withdrawal limit is $10,000 per individual • The lifetime withdrawal maximum is $20,000 per individual 2009 - First HBP increase • New Limit: $25,000 per individual. • The increase was introduced as part of federal budget changes to reflect rising housing costs. 2019 - Second HBP Increase • New Limit: $35,000 per individual. • Announced in the 2019 federal budget to support affordability for first-time homebuyers. 2019 -HBP Enhancement for Life Events • The HBP was expanded to allow individuals experiencing a marriage or common-law partnership breakdown to participate, even if they were not first-time homebuyers. 2024 - Recent increase • New Limit: $60,000 per individual. • The increase was introduced as part of federal budget changes to reflect rising costs. A Flawed Strategy The Home Buyers' Plan (HBP) and Lifelong Learning Plan (LLP) were introduced in Canada as tools to make housing and education more accessible. While well-intentioned, these programs effectively allow individuals to borrow from their future retirement savings—a strategy that can have significant negative consequences. Ask any high school economics student, and they will tell you that compromising two of the three main elements (principle and time) in investing growth will lead to a disappointing return. Here is the formula: principle X interest + time = compounded return. ⚠️ WARNING: Retirement Warning Using your RRSP to purchase a home or finance education may seem like a smart financial move. But remember, you’re withdrawing money from the very account designed to support you when you’re no longer earning an income. Lost time and compound growth can never be fully recovered. Are We Borrowing From the Future to Pay for Today? The Problem with the Home Buyers’ Plan (HBP): Addressing Housing Affordability at the Expense of Retirement The HBP permits individuals to withdraw up to $60,000 from their RRSP to buy a first home. In an environment of rising house prices, this measure may help buyers cobble together a down payment, but it drains retirement funds. The funds are unavailable to grow tax-free over decades, diminishing the compounding returns essential for retirement security. The Problem with the Lifelong Learning Plan (LLP): Financing Education by Sacrificing Retirement The LLP allows up to $20,000 in RRSP withdrawals to fund education, which can help individuals upskill. However, education often doesn’t yield immediate returns, and the withdrawn funds lose their growth potential, including the compounded returns. Why This Harms Future Retirees Issue #1: Loss of Compounding Growth Withdrawals disrupt the power of compounding, which is vital for retirement savings. For example, $35,000 left in an RRSP for 25 years at a 6% annual return could grow to over $150,000. If that same $35,000 were withdrawn 15 years ago and repaid over the same period as required by the HBP program, it would be worth $54,311, a loss of $95,689 Issue #2: Repayment Struggles While repayments are required, life’s expenses (mortgage, childcare, loans) often make it hard to repay on schedule. Failure to repay means the amount withdrawn is added to taxable income, further reducing the effectiveness of the programs. Issue #3: Insufficient Savings Most Canadians are already under-saving for retirement. Encouraging them to dip into their RRSPs exacerbates this shortfall. Two Different Problems.  One Harmful Solution Housing Affordability Rising house prices are driven by supply-demand imbalances, speculation, and policy failures—not a lack of down payments. Increasing the HBP withdrawal limit does nothing to address the root causes of affordability, but it may drive prices higher by giving buyers more purchasing power. Retirement Security Retirement savings should be preserved and grown to ensure financial stability in later years. Programs like HBP and LLP blur the line between short-term needs and long-term planning. Why Would our Government Do This? Political Expediency Housing affordability and access to education are politically sensitive issues. Allowing individuals to tap into their RRSPs is a cost-neutral policy for the government (unlike direct subsidies or programs). Policies like these help politicians get elected or stay in office. And in proper political form, these policies only tell half the story. Vote for us because we will help you buy your first home, which is a great campaign strategy. Vote for us because we will make it look like we help you buy your first home when, in fact, we will set up a program that will allow you to borrow from yourself at the cost of your retirement, which is political suicide. Short-Sighted Economic Policies Policymakers may believe that homeowners and educated individuals are more financially secure, even if their retirement savings are compromised. The logic might be that owning a home or having better job prospects could mitigate future hardship. Assuming Home Equity is a Safety Net The government might assume that homeownership ensures financial stability in retirement. However, this overlooks that rising housing costs often mean seniors have high debt levels or are "house rich but cash poor." The Bigger Problem with the HBP and LLP Programs: No Warnings or Education Given to Canadians Neither the HBP nor the LLP adequately informs individuals of the long-term consequences of their decisions. To make matters worse, the participants of these programs will likely realize the impact once it is too late to take action. People considering retirement are often in their late 50s to early 60s, past their prime saving years. Borrowing from retirement accounts may seem like “borrowing from yourself,” but this lost growth can never be recouped. Many Canadians are not well enough informed to assess these trade-offs, leading to decisions that harm their financial future. In Case You’re Thinking, These Seniors Have Inadequate Savings - But at They At Least their Homes. The HBP and LLP programs may reflect a government view that seniors would be better off owning a home than relying solely on inadequate savings. But this is flawed for a number of reasons: A home is not a liquid asset—it cannot pay for groceries or healthcare. Also,  Seniors with insufficient retirement savings often need help with financial distress despite owning property. They sometimes need reverse mortgages or sell their homes out of desperation. An Unfortunate Misguided Solution Rather than “quick fixes” that appear to solve immediate challenges while creating long-term problems, the Federal government should instead focus on longer-term, systemic solutions For housing: Governments need to curb speculative investments and provide targeted assistance for first-time buyers. Plus they need to focus on programs that increase housing supply, such as income tax incentives for homeowners to build accessory dwelling units (ADUs). These units could be rented out or used for caregivers. Or adopt a policy allowing first-time home buyers to not pay tax on their first $250,000 of income. First-time home buyers could use the tax savings as a down payment. The HST Rebate for eligible buyers of new homes introduced March 2026 is a start, not perfect, but it is a step in the right direction. For Education: Governments need to expand grant programs and low-interest loans to prevent reliance on retirement funds.  This will not only help us increase the number of skilled workers to fill critical gaps in vital sectors such as technology, healthcare engineering and the trades.  It will also contribute to a higher GDP and build a more sustainable tax base for future generations. Retirement savings should be treated as sacred capital, not a convenient source of funding for unrelated government priorities. Governments shouldn’t solve today’s problems by quietly asking Canadians to mortgage their retirement. Votes are counted on election night. The consequences aren’t counted until retirement. Don’t Retire … Re-Wire! Sue Important: This article is intended for educational purposes only and does not constitute financial, mortgage, tax, legal, or investment advice. Before making decisions about your retirement or home equity, consult qualified professionals who can assess your personal circumstances.

Augusta University's Simon Medcalfe on the Real Economics of Hosting the World Cup

With the World Cup underway across the U.S., Canada, and Mexico, Dr. Simon Medcalfe, economist at Augusta University's Hull College of Business, wrote for Augusta Business Daily about why FIFA's headline economic projections for the tournament don't hold up. His piece breaks down why most of the spending tied to hosting the event isn't new activity but rather it's money that would have been spent elsewhere regardless. As Medcalfe put it: "New spending is not created; it is just moved around." Read his full column in Augusta Business Daily :  Dr. Medcalfe is a Professor of Economics and Finance at Augusta University, with research spanning sports economics, community and economic development, and social determinants of health. He holds a PhD in Business/Managerial Economics from Lehigh University. If you're covering the economics of hosting major sporting events, public subsidies for host cities, or the gap between projected and actual tourism impact, Dr. Medcalfe is available for comment. Click on the contact button in his profile below. 

Expert Insights on the Manhattan High-Rise Structural Concerns

The unfolding structural emergency at the former Pfizer headquarters on East 42nd Street in Midtown Manhattan raises urgent questions issues such as load limits, weight redistribution, structural steel, emergency shoring and in general the challenges of converting older office towers into residential buildings. As officials and engineers continue to investigate what happened, the incident points to a larger issue facing many major cities: how safely can older commercial buildings be adapted for new uses, especially when vertical additions, new floor loads and major structural modifications are involved? ExpertFile has a range of structural engineering experts available to help journalists and audiences understand the engineering issues behind this story. Featured Experts Edward Sippel, P.E., Ph.D. Assistant Professor, Milwaukee School of Engineering Edward Sippel is an expert in structural engineering at the Milwaukee School of Engineering with a focus on steel structures, stability and structural analysis. His expertise in structural steel, finite element analysis and nonlinear analysis makes him especially relevant to questions about column buckling, steel-frame behavior, temporary reinforcement and how engineers assess whether a damaged steel structure can be stabilized or repaired. David O. Prevatt Professor, University of Florida David O. Prevatt is a structural engineer at the University of Florida whose areas of expertise include structural load paths, structural engineering and resilient building performance. His expertise is especially relevant to explaining how loads move through a building, what happens when weight is added or redistributed, and why engineers must understand the full path that gravity loads take from upper floors down to the foundation. Key Questions Experts Can Address How do added floors or major renovations change the way weight moves through an existing building? What causes a steel column to buckle, and how is that different from other types of structural failure? Why do transition points between older and newer parts of a structure require special attention? How do engineers use temporary shoring, jacks and steel reinforcement to stop movement during an emergency? What should cities, developers and regulators consider as office-to-residential conversions become more common? Additional Structural Engineering Experts Available Beyond load paths and steel mechanics, this story also raises broader questions about structural health monitoring, building inspections, retrofits, aging infrastructure, concrete systems, structural dynamics and resilient design. ExpertFile includes additional experts who can speak to these related issues, including: For journalists covering the Manhattan high-rise situation, office-to-residential conversions, emergency building stabilization or the future of urban infrastructure, these experts offer relevant structural engineering expertise that may help add context, clarity and perspective to your reporting. Looking for more experts?  Visit: www.expertfile.com About ExpertFile ExpertFile is the worlds largest open-access, curated search engine for experts. ExpertFile is the best way to search and connect with credible experts on over 50,000+ topics. Our award-winning software platform is trusted by leading knowledge-based organizations to help them manage and connect their research and perspectives to a broader audience. Download the ExpertFile Mobile App.

The Final Whistle: What Ronaldo’s World Cup Exit Reveals About Letting Go

While the fans watched the final moments of Cristiano Ronaldo’s World Cup career, they were also witnessing something much deeper than the end of a match. They were seeing the psychological transition that every athlete eventually faces. Elite athletes spend decades developing an identity centered around training, competing, and performing at the highest level. When that chapter comes to an end, the challenge is no longer physical — it becomes psychological. It isn’t about walking away from the sport. It’s about redefining who they are without the game that has shaped so much of their life, and answering the question: who am I without sport? From a sport psychology perspective, successful retirement is defined by how well an athlete adapts to life after sport. Research shows that retirement is healthier when it is done proactively. Ideally, the athlete begins to develop interests outside of sport, builds a strong support system, and recognizes that their value extends beyond athletic performance. The goal is not to replace the identity of the “athlete” but to expand it. The skills that made them successful — discipline, leadership, and resilience — become the foundation for the next chapter. Retirement from elite sport is a process, not a single moment. For someone like Ronaldo, what makes this transition especially unique is that it happened on the world’s biggest stage. Elite athletes transition as millions watch, analyze every reaction, and say goodbye alongside them. It’s completely normal for athletes to experience mixed emotions— pride, gratitude, sadness, uncertainty, and even relief — all at the same time, as they reflect on the reality of closing a chapter that has defined much of their life. The end of an athlete’s elite career isn’t just about leaving competition. It’s about navigating a new sense of identity, discovering purpose beyond sport, and embracing a legacy that has impacted the sport and inspired generations. If you're covering stories on athlete retirement, identity, or the psychology behind the 2026 World Cup, connect with Robyn Trocchio. CONNECT WITH THE EXPERT Robyn Trocchio, Ph.D., CMPC Associate Professor and Graduate Program Director | Harris College of Nursing & Health Sciences, Kinesiology View Full Profile. Areas of expertise: Sport, exercise, and performance psychology · enhancing human performance from a psychophysiological perspective · attention allocation and perception of effort during physical activity · applied sport psychology research

North Atlantic Sargassum Bloom Hits Record Levels – and Florida is Feeling the Surge, One Expert Says

Dr. Brian LaPointe, Research Professor at Florida Atlantic University’s Harbor Branch Oceanographic Institute, is one of the nation’s most recognized experts on marine ecosystems. His work spans algal physiology, biochemistry, biodiversity, and coastal conservation — with more than a decade of dedicated research focused on the rise and impact of sargassum blooms across the Atlantic. LaPointe confirmed that sargassum levels in the North Atlantic have hit a new biomass record — and much of it is now washing ashore across South Florida’s coastlines. The scale of this bloom, he says, could have lasting consequences for marine ecosystems, tourism, and public health. LaPointe recently spoke to CNN about why this record bloom is raising alarm bells: “Sargassum goes from being a very beneficial resource of the North Atlantic to becoming what we refer to as… a harmful algal bloom when it comes ashore in excessive biomass.” Ammonia is another problem emitted by the decaying seaweed, LaPointe noted. The chemical compound “strips the oxygen out of the waters along our coastal ecosystems like mangroves, coral reefs, seagrass beds,” he said. The scale of the bloom is staggering. According to University of South Florida estimates cited by LaPointe, over 31 million tons of sargassum have been detected this year — a 40% increase over the previous record. Dr. Brian LaPointe is available to speak with the media on this topic. For interviews, click below to view his full profile and click the connect button.

Can Music Legends Rewrite Their Legacy?

The Stones didn’t need another hit. With six decades of chart-topping albums, sold-out tours, and songs woven into popular culture, their place in rock history has long been secure. Yet the band’s scheduled release of another studio album, “Foreign Tongues,” on July 10, raises questions about how late-stage work can impact the legacy of the Stones and other enduring musical acts. For John Covach, director of the Institute of Popular Music at the Univeristy of Rochester and a leading scholar of rock music, that’s where the real story is.  “Every late-career album asks us two questions,” Covach says. “What does it say about where the artist is now? And does it change how we hear everything that came before?” It’s a question that could be applied to artists from Bob Dylan and Paul McCartney to Bruce Springsteen and Neil Young. Sometimes late work reflects an unexpected creative renaissance. Sometimes it simply reinforces an artist’s legacy. Sometimes it challenges audiences to rethink musicians they thought they already understood. Sometimes it becomes a footnote to their career. “An artist's latest act can in many ways be as revealing as their first,” Covach says. Covach, who co-edited The Cambridge Companion to the Rolling Stones (Cambridge University Press 2019) and whose online course on the music of the Rolling Stones has enrolled thousands of students worldwide, says reporters covering the Stones’ new album have an opportunity to explore broader issues that resonate across popular culture: • Can new work meaningfully change an artist’s historical legacy? • Why do some musicians continue creating well into their seventies and eighties while others stop? • Can a new release introduce younger listeners to artists whose biggest hits predate them by decades? • How do critics — and fans — judge new music from legendary performers differently than music by younger artists? • What determines whether late-career work becomes an essential part of an artist's catalog — or a historical footnote? Covach has spent decades studying the evolution of popular music, and his books and scholarship have helped shape how the genre is taught. He is also a frequent media commentator on the cultural significance of major artists and musical milestones. Click on his profile to connect with him.

Structural Engineering Expert Available to Discuss High-Rise Building Stability, Structural Failures and Building Safety

University of Delaware structural engineering expert Michael Chajes is available to discuss the engineering challenges involved in assessing and stabilizing high-rise buildings following structural damage, structural failures and concerns about potential collapse. Chajes, a professor of civil and environmental engineering and a registered professional engineer, specializes in structural engineering, structural health monitoring and forensic engineering. He has provided expert commentary to national media outlets on major structural failures, including the Surfside condominium collapse and the Francis Scott Key Bridge collapse. His expertise is particularly relevant to the ongoing situation in New York involving a high-rise that is at-risk of partial collapse. He can discuss. • The conditions that can trigger structural instability during construction, renovation or changes in building use. • How engineers assess damaged structures and determine whether a building can be stabilized or safely repaired. • The engineering challenges involved in converting older office towers into residential buildings, including changes in structural loads, construction sequencing and temporary support systems. • How structural health monitoring and inspection technologies help engineers evaluate the safety of aging infrastructure and high-rise buildings. To arrange an interview with Chajes, visit his profile and click on the contact button. Interested reporters can also send an email to MediaRelations@udel.edu.

Sample Provides Analysis of Landmark Supreme Court Decisions

Professor James Sample of the Maurice A. Deane School of Law at Hofstra University was among the nation’s leading legal scholars providing analysis of the U.S. Supreme Court’s landmark end-of-term decisions this week, appearing on ABC News and MSNBC’s MS NOW to examine the Court’s rulings alongside other major legal and constitutional developments. Professor Sample summarized the recent analysis on his “Who Decides Who Decides” Substack. Across his June appearances, Professor Sample provided legal insight into the Supreme Court’s decisions involving birthright citizenship, immigration, transgender athletes, and religious liberty, while also analyzing election law disputes, executive authority, federal investigations, and litigation involving the Trump administration. His commentary offered audiences context on the constitutional questions shaping the Court’s term and the broader implications for American law and democratic governance.