The Life-Changing Benefits of Registered Disability Savings Plans (RDSP’s)
September 22, 2017 4:30 pmLife can change in an instant.
I was introduced to a great friend of mine around ten years ago for the first time in a trendy pub with high tables and a crowded, funnel-style bar serving fancy drinks. It was a great time with friends, laughter, and a bubbling crowd enjoying the night.
As soon as I met Sara I immediately shuddered because of how uncomfortable I’d be in her situation: plowing through the crowd hip-high in a motorized, high-powered (and expensive-looking) wheelchair.
But it didn’t seem to slow her down or dull her mood. And why should it? Sara had been living in a wheelchair since she was in her early teens following a car accident. There was no way I could fully appreciate the scope of her difficulties, but when we met, if those difficulties affected her in the least, I sure didn’t realize it.
I would later learn more about Sara’s home-care requirements, the special augmentations on her house just so she could get around, and the added responsibilities placed on friends and family.
- Who pays for those renovations?
- How much does that souped-up specialized van cost?
- What’s the going rate for home caregivers?
Rolling With The Punches
Those are tough questions to answer whether you’re living with a longterm disability or a new one. One truth we can agree on? It’s expensive. Fortunately in Canada there’s help.
Sara’s approach to her disability is nothing short of inspiring. She talks openly about the challenges while also appreciating what she does have – great friends, a loving family, and assistance through government grants, the disability tax credit, and her Registered Disability Savings Plan.
If you qualify for a disability tax credit, you and your family qualify for a Registered Disability Savings Plan.
Because while Sara’s story is inspiring, and despite being a pillar of strength for her family and friends, the reality is that living with a life-long disability is an enormous strain on one’s financial well-being.
I’ll let this excellent resource spell out precisely how it works, but here are the finer points:
- A RDSP beneficiary can also be the RDSP plan holder
- Lifetime contributions up to a total of $200,000 can grow tax free
- Government contributions are possible until age 49
Carrying on With Life
One other great benefit of RDSP’s? You might disagree with this one (I know my 67 year-old father would), but the beneficiary starts receiving payments at age 60 whether you want to or not. For old-school blue collar folks like my Dad who would refuse financial help for as long as possible, this is a definite plus.
And that’s just the nature of financial assistance, isn’t it? We work hard day in and day out – help with the bills sounds great, but until you actually start receiving that help, it’s tough to know how you’ll feel about it.
And that’s if your circumstances are somewhat normal.
Disabilities affect people in all sorts of ways at every age and in all walks of life. It’s another reason I love this country. No one should be held back from enjoying a night out on the town or the mere luxury of moving around their own home.
Want to learn more about Registered Disability Savings Plans? Get in touch with me today.
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This post was written by Marco Faccone