By Sheryl Smolkin
If you’re age 18 to 71 years of age, you can join the Saskatchewan Pension Plan. Participation is not restricted by where you live or membership in other plans. However, you must have available Registered Retirement Savings Plan (RRSP) room to contribute to SPP.
As a result, you can continue to contribute to SPP even if you leave the province. As long as you live in Canada, your SPP contributions will be tax deductible and grow tax free within the plan. Any payments out of the plan after age 55 will be taxable income.
Because SPP participation is not restricted to provincial residents, it is a particularly good retirement savings vehicle for organizations with employees in more than one province. Whether you are transferred from one end of the country to another or move to take a new job, you can continue contributing to the plan.
If you move outside of Canada before or after retirement, the tax treatment of SPP contributions and withdrawals may differ. You should seek tax advice from a lawyer or an accountant in the jurisdiction where you plan to move, either when you are still working or you retire.