WHY YOU SHOULD GET AN RDSP IF YOU CAN! (THE $70,000 GOVERNMENT GIFT)
TYLER HOFFMAN
January 3, 2026
Jennifer almost missed the biggest government benefit available to Canadians.
The 34-year-old Sheriff from Abbotsford had been coping life with PTSD. She qualified for the Disability Tax Credit but had never heard of an RDSP.
Her financial advisor never mentioned it. Her accountant never suggested it.
Jennifer was eligible for up to $70,000 in free government money and didn't know it.
AND she'd been focusing on RRSPs and TFSAs like everyone else, missing the most generous government program for people with disabilities.
BUT when Jennifer discovered the Registered Disability Savings Plan, she realised she could receive more government contributions than she'd ever put in herself.
THEREFORE, Jennifer opened an RDSP and will receive $70,000 in government grants and bonds over her lifetime - money that will transform her financial security.
What Jennifer discovered about RDSPs:
The government contributions:
Canada Disability Savings Grant: Up to $3,500/year
Canada Disability Savings Bond: Up to $1,000/year
Maximum lifetime grants: $70,000
Maximum lifetime bonds: $20,000
Total possible government contribution: $90,000
Jennifer's RDSP strategy:
Annual contribution: $1,500
Government grant (300% match): $3,500
Government bond (no contribution required): $1,000
Total annual RDSP growth: $6,000
The math that shocked Jennifer:
Her contribution: $1,500/year × 20 years = $30,000
Government grants: $70,000
Government bonds: $20,000
Investment growth on $90,000: $180,000+
Total RDSP value: $300,000+
Jennifer's contribution: $30,000
Government's contribution: $90,000
Investment growth: $180,000
Who qualifies for an RDSP:
Eligible for Disability Tax Credit (DTC)
Canadian resident
Under age 60 when plan opened
Valid Social Insurance Number
The Disability Tax Credit eligibility:
Physical or mental impairment
Markedly restricts daily activities
Expected to last 12+ months
Certified by a medical practitioner
Jennifer's DTC conditions that qualify:
Type 1 diabetes with severe restrictions
Requires life-sustaining therapy
Significant time spent on medical care
Approved for DTC retroactively
The RDSP advantages Jennifer learned:
Government matching:
300% match on the first $500 contributed
200% match on next $1,000 contributed
100% match on contributions above $1,500
Maximum $3,500 grant annually
No contribution required for bonds:
$1,000 annual bond for low-income families
Based on family net income
No personal contribution needed
Free money for qualifying families
Tax advantages:
Contributions not tax-deductible
Growth tax-sheltered
Withdrawals partially taxable
Similar to the TFSA structure
Flexibility features:
Contributions until age 59
Withdrawals starting at any age
10-year holdback rule on grants/bonds
Lifetime benefit planning
Jennifer's RDSP timeline:
Year 1:
Opened RDSP account
Contributed $1,500
Received $3,500 grant + $1,000 bond
Account value: $6,000
Year 5:
Total contributions: $7,500
Total grants: $17,500
Total bonds: $5,000
Investment growth: $8,000
Account value: $38,000
Year 20:
Total contributions: $30,000
Total grants: $70,000
Total bonds: $20,000
Investment growth: $180,000
Account value: $300,000
The withdrawal strategy:
Age 60+: Begin strategic withdrawals
Grants/bonds: 10-year holdback rule
Proportional taxation on withdrawals
Lifetime disability income security
Jennifer's breakthrough: "I had no idea the government would give me $3,500 for every $1,500 I contributed. This isn't just a savings plan - it's a wealth-building program specifically designed for people like me."
Common RDSP misconceptions:
"It's too complicated" (it's actually simple)
"I don't qualify" (many conditions qualify)
"I can't afford contributions" (bonds require no contributions)
"It's not worth it" (it's the best government program available)
The RDSP vs. other savings
RRSP:
Tax deduction now, taxed later
No government matching
Forced withdrawals at 71
TFSA:
No tax deduction, tax-free growth
No government matching
Flexible withdrawals
RDSP:
No tax deduction, tax-sheltered growth
Up to 300% government matching
Designed for lifetime disability support
Jennifer's action steps:
Applied for Disability Tax Credit
Opened RDSP with the bank
Set up automatic contributions
Maximised government grants annually
The lesson: The RDSP is the most generous government program that most eligible Canadians never use.
Jennifer's RDSP will provide $300,000+ in disability income security, with the government contributing 75% of the total.
Sometimes the best financial strategy is claiming the benefits you're already entitled to.
Connect with Tyler to review your RDSP plan options