Retirement savings plan

A retirement savings plan (RESP) is a savings product that allows investors to build up long-term savings to prepare for retirement. It can be purchased from an insurance company or a bank.

The principle of the RIP is simple: the investor pays regular or one-off contributions to his retirement savings plan, which are invested in financial instruments chosen by the investor or proposed by the financial institution. The value of the money invested is thus calculated over time in line with developments on the financial markets.

The tax advantage of the RIP is that the contributions paid are deductible from taxable income within certain limits. Moreover, any gains made on the retirement savings plan are not subject to income tax, as long as the amounts remain invested on the plan.

The capital accumulated on the RIP may be recovered as a life annuity from retirement age or as capital in one or more installments. It is also possible to recover the capital invested before retirement age, but this can have tax and financial consequences.

It is important to note that RIPs may have entry, management and exit fees, which may vary from one financial institution to another. It is therefore advisable to compare the offers carefully before subscribing to a PER.

Finally, there are several types of RIP, such as the individual RIP, the enterprise RIP or the collective RIP. It is important to understand the characteristics of each type of RIP in order to choose the one that best suits its situation.