Shannon, age 15, loves playing baseball, skiing, and swimming with dolphins. She also has a severe disability called Engelmann’s Syndrome. For her parents, Kathy and Rob, their biggest worry is what will happen to Shannon when they are no longer here to care for her. Saving on their own has been difficult.
So when they sat down with a financial adviser, one of the things they talked about was setting up an Registered Disability Savings Plan (RDSP). Here is the savings plan they developed for Shannon’s future
From age 15 to 34
Kathy and Rob will open an RDSP for Shannon at their local bank and deposit $2,000. They will put $200 per month in the RDSP for the next 20 years. That’s a total of $48,000. The federal government will put in an added $79,500.
At age 45, when withdrawals begin, Shannon’s RDSP could be worth more than $377,237.
For the rest of Shannon’s life
The RDSP will make monthly payments to Shannon based on this schedule:
- Age 45: $850 monthly
- Age 55: $1,500 monthly
- Age 65: $2,500 monthly
- Age 75: $4,200 monthly
Shannon could keep her RDSP payments and also her Ontario disability income assistance payments. At Shannon’s death, whatever is left in the RDSP will be distributed to her family or through her will. (Source: PLAN)
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Reprinted with permission from PLAN
This graph shows how much money is in Shannon’s RDSP. It starts at age 15 (on the bottom) and goes to age 83. To see how much money the RDSP has look at the age and see how high the bar goes. At age 15, it is $0. At age 25, it is more than $50,000. At age 35, it is more than $200,000 and it continues to grow.
Reprinted with permission from PLAN
This graph shows how much Shannon would receive each year from her RDSP. At age 45, she would get $10,000. At age 60, she would get about $22,000 per year. At 75, she would get more than $50,000 per year and so on. Shannon could keep her RDSP payments and also her ODSP disability income assistance payments.
Keep in mind that Shannon could keep her RDSP payments and also her ODSP Income and Disability Benefits. |