Canadians should be able to buy and sell RRSP room

By Michael Cohen
|CHRR, Guide to Pensions & Benefits|Last Updated: 04/12/2001

It may seem a little crazy — perhaps even absurd. But the time has come to give individuals the ability to actually use, in whatever form, all their unused RRSP room. And it’s not only “Joe Canadian” who can profit from this novel approach to investing. The Canadian government can also jump on-board and cash in.

As background, the amount of money that individuals across Canada have contributed towards their RRSPs dropped in 1999, and is expected to continue to drop in 2000. The reason is obvious to average employees across the country: those who have RRSP room do not have money to save, and those who do have substantial disposable income to stash away for a rainy day do not have enough room to do so.

Well, it’s time for everyone across Canada to capitalize on this available space, and one idea to help move this along would be to develop a market in unused RRSP room. Simply put, it’s time to buy and sell.