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 [provincial] 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)

Click here for chart.



Special to The Globe and Mail


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