Only 36.2 per cent out of approximately 466,000 disability tax credit (DTC) eligible Canadians had Registered Disability Savings Plan, according to 2017 Employment and Social Development Canada statistics.  

This means the available government incentives for this segment of the population are not being paid out to those who may need it most.  

Launched in 2008, a Registered Disability Savings Plan (RDSP) is a government-assisted and tax-deferred savings account designed to help parents and relatives save for the long-term financial security of a child or relative, known as the beneficiary, who qualifies for the DTC.  

Since 2008, approximately $1.8 billion in grants and $837.5 million in bonds were paid into RDSPs by the Government of Canada by the end of 2017. In 2017, $351.6 million in grants were paid into RDSPs out of a possible $1.6 billion. 

Central 1 is the only central in Canada actively promoting RDSP to credit unions. The success of our members and clients, and the financial well-being of your members continues to be our compass and purpose. We understand how important it is for credit unions and our clients to offer their members the right products and services. Having a full suite of savings and investment options sets up your members for success, supports their financial goals, and helps you retain them long-term. 

Investing in an RDSP will provide the beneficiary with an additional source of income in the future without impacting most provincial disability benefits and other federal income-tested benefits. 

RDSPs by the numbers  

(Employment and Social Development Canada 2017) 

• An average of $5,900 was paid into RDSPs by the Government of Canada in 2017. 
• The annual average contribution by RDSP holders was $2,500. 
• Only 168,567 plans were registered in Canada out of 466,060 DTC eligible population.  
• The average value of an RDSP was $25,900 in 2017. 
• Top 3 provinces where accounts are opened: Ontario (41.75 per cent), British Columbia (17.3 per cent) and Quebec (14.8 per cent). 
• Of those aged 0-18 years, only 24.9 per cent have RDSPs out of 45.4 per cent DTC eligible Canadians.
• Average age of new beneficiary at the time the plan was opened was 27 years of age.
• Approximately 57 per cent of beneficiaries had family incomes below $30,000. 
• RDSP must opened before the end of the year the beneficiary turns 49 years old. 

For more information about RDSPs and how Central 1 can support you, please contact financialservices@central1.com. 

* Currently, Central 1’s registered products are available in B.C. Ontario and Manitoba.  Are you an individual looking to open an RRSP, RDSP or other Registered Financial Products? Find a credit union in your community.