13 November 2008

Letter Published: No RRSP Savings without Income

Found in the Times Colonist today:

Re: "Study finds few eligible Canadians contribute to RRSPs," Nov. 6.

I had to laugh at the article. I've been deemed eligible to contribute to an RRSP every year since RRSPs came into being. But for the past eight years, my income has averaged $8,500 annually.

Where would anyone expect a person like me to find money to put aside into a RRSP, someone who, most years, doesn't make enough to pay income tax?

Perhaps what's needed is for the eligibility criteria for participation in the RRSP program to be examined, rather than making it appear that taxpayers, particularly low-income taxpayers, are clueless about the purported benefits of RRSPs.

Said benefits do not accrue to all RRSP participants.

In fact, there can be a cost for those whose total household income is in the lowest two quintiles of income.

Chrystal Ocean

'Tis good that at least some of my letters to the editor are getting through.

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