How the RDSP Works

While every scenario is different, the following illustrates how the RDSP can be applied:

  1. A family registers their son, Josh with an RDSP
  2. Josh receives disability benefits and has an income of less than $24,183
  3. Each month, Josh’s parents are putting $125 in Josh’s RDSP for a total of $1500 each year
  4. As the RDSP is based on Josh’s income, he will receive both the Grant and Bond
  5. The Canada Disability Savings Grant will contribute $3500
  6. The Canada Disability Savings Bond will contribute $1000
  7. Ted decides to place the funds in a conservative fund for stable growth
  8. When Josh is 54 years old, his father plans to give his inheritance early and make a one time gift into the RDSP of $55,000. This means there is more personal contribution in the RDSP than government contribution, and therefore more flexibility for Josh when withdrawing funds.
  9. With a return of 5.5% annually, Josh will have $432,000 by the time he starts withdrawals at age 55.
  10. There will be no claw back on the funds.
  11. This means an additional $15,000 annually to help Josh meet his medical needs and leave his parents with the peace of mind that Josh will be cared for.

All calculations are unique to the particular person’s situation. For an accurate self-assessment visit the RDSP website and use the RDSP calculator.

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“We learned an important organizational lesson in PLAN’s early years. Our innovative programs would not have much impact unless they were recognized by society’s systems and institutions.  We needed our governments to recognize and adjust their regulations, policies and statutes to accommodate the solutions that we were developing.  Since then we learned that all social innovations require corresponding structural changes in order to be sustainable, long lasting, and to have widespread impact”. – Al Etmanski, Safe and Secure

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