According to an article by Carol Goar in the Dec. 3rd Toronto Star, if you are on welfare or are going to be on welfare, don't try to save any money, in RRSP's or otherwise. The first thing they will tell you is, and I quote: "He told them they'd be crazy to do it".
It seems that if you want to save any money for education, retirement, etc, and fall on hard times, they will tell you, and I quote: "Current rules encourage them to spend it as quickly as possible".
So much for getting ahead.
You can read the entire article at:
Punished for their providence
However, if you are middle class or wealthy, they encourage you to save in RRSP's and other tax shelters. Loopholes only work if you have money.
In other words, there is no place for you to save if you are poor. You aren't supposed to be able to save, I suppose is what they are saying.
So much for getting out of poverty. Don't expect any help soon.
[Ed note: The article actually focuses on the potential creation of a new sort of savings plan for low income Canadians, which would in fact help.]
Punished for their prov...