Saving for the future takes focus and planning. When it comes to achieving financial security, set-it-and-forget-it is not an option. Whatever your ultimate retirement goals are—travelling, a new business, doting on your loved ones—take advantage of your benefits to help you get there.
Contributions—yours and Adobe’s
You can contribute up to 18% of your income, as long as it falls within the Canada Revenue Agency’s (CRA) limit. To review your limit, refer to your most current Notice of Assessment.
You will receive a match up to 4% of your earnings, depending on how much you contribute to the RRSP. Adobe does not contribute to the Tax-Free Savings Account (TFSA).
Here’s how it works:
Once you are enrolled, your regular deferral percentage applies to your base salary and any commissions and rolls over from year to year. However, if you wish to defer a portion of your annual incentive plan (AIP) bonus, you must visit the Manulife website or call Manulife at 888-727-7766 and elect your AIP deferral percentage each year at least 15 days before the AIP payment date.
Why you should participate
Besides the matching contributions from Adobe, your RRSP through Manulife provides benefits and services that may not be available to you through an individual savings or investment account. These benefits include:
- Convenience: Make regular contributions directly from your pay cheque.
- Immediate tax reduction: Your contributions are taken from your gross pay before payroll taxes are calculated, reducing the amount of your income that’s taxed.
- Tax-deferred growth: Your money grows tax-free while in the plan and is only taxed when you withdraw it.
- Lower investment management fees: Take advantage of the competitive investment management fees.
- Leading fund managers: Access some of the world’s leading fund managers and their funds, many of which aren’t available to individual investors.
- Secure website and telephone account access: Manage your account and investments in the way that’s most convenient for you.
- Easy-to-read statements: Manulife’s statements provide updates on your savings and include tips and reminders to help you build an effective retirement savings plan.
- Consolidate your savings: Transfer accounts you hold at other institutions to get a consolidated view of your retirement savings.
Tax-Free Savings Account (TFSA) option
The Tax-Free Savings Account (TFSA) option lets you save after-tax dollars and invest for short-term savings goals, such as buying a car, taking a vacation, or retirement. You can contribute to the TFSA in addition to making salary deferrals to the RRSP.
While your contributions to the TFSA are not matched by Adobe, this account has distinct advantages:
- You can make contributions to the TFSA at any time—including additional one-time contributions—up to the Income Tax Act (ITA) maximum limit. Visit Canada.ca to confirm the annual maximum limit.
- Same wide range of investment options: You can invest your account in any of the same investment options available in the traditional RRSP, including target date funds, fixed income, and equities.
- No tax on earnings: Any income, capital gains, and dividends you earn in a TFSA are yours. You won’t be taxed on what you earn—even in retirement.
- No penalties for withdrawals: You can take your money out whenever you need it (subject to the type of investment you’ve made). This makes the TFSA a good option for saving for short-term goals. Plus, any withdrawals will be added back to your contribution room in the following year, allowing you to contribute more next year.
- You can carry it over year to year: Any unused contribution room can be used in future years.
- No upper age limit on contributions: You can keep contributing well into your 70s and 80s, unlike your RRSP.
Who is eligible & how to enrol
Regular employees and interns who work at least 20 hours per week are eligible to participate in the plan as soon as they are hired. Participation is completely voluntary; however, if you do not wish to join the plan, you must contact Manulife within 60 days of your hire date. Otherwise, you’ll be enrolled in the plan’s default option “Manulife Retirement Fund,” with a 6% pay cheque deferral. You can also establish an RRSP for your spouse.
Visit Manulife’s website, or call 888-727-7766 to get started.
- To enrol in the RRSP, use policy number 20004011 and access code C1202.
- To enrol in the Tax-Free Savings Account option, use policy number 41004011 and access code T1202.
To transfer investments, complete the transfer authorization form [PDF].