Increase RDSP lifetime limit
Petitioners ask to raise the RDSP lifetime limit to $300,000 and index contribution room annually. The government responds that the $200,000 limit reflected expert advice and suffices to access grants and bonds.
Why we would sign this petition
- Raising the RDSP lifetime limit would restore savings capacity lost to inflation, enabling beneficiaries to build larger long-term reserves.
- Indexing contribution room annually would preserve the RDSP’s real value over time and align it with other indexed registered accounts.
- Higher limits could let families save more privately and reduce future reliance on government assistance.
Why we wouldn’t sign this petition
- The government says the $200,000 cap was set on expert advice and already suffices to access RDSP grants and bonds, so raising it may be unnecessary.
- The petition notes only about 35% of eligible individuals use RDSPs, so higher limits might not address low uptake or other barriers like awareness.
- Other measures — outreach, simplifying access, or using TFSA and existing grant programs — might be more effective or simpler than changing contribution limits.
The summary and both sets of reasons are AI-generated from the petition and given equal weight. Claims are the petitioners’ own; consult the official record for the full text.
Official petition
Petition to the Minister of Finance and National Revenue The RDSP (Registered Disability Savings Plan) introduced in 2008 by the Federal Government has been a great vehicle for disabled individuals to create future savings; A recent stat indicates that only 35% or so of eligible individuals is taking advantage of this program; Since the inception of this program the cost of living has increased dramatically; Affordability has changed for families, especially for those who have disabilities; and There has been no meaningful increase to the amount of contribution room to this account. We, the undersigned, Citizens of Canada, call upon the Minister of Finance and National Revenue to 1. Increase the lifetime contribution from $200,000 life time to $300,000 lifetime, a number which reflects the Government of Canada's inflation calculator from 2008 (RDSP inception) until today; 2. Have the inflation rate account for the contribution room each year in the same manner that RRSP, TFSA, CPP and all other accounts and services are increased on an annual basis; and 3. Have these chnges tabled in the Fall budget as there is no request for additional funds from the Treasury, nor is a request to change the tax code, just an opportunity for individuals to save more to assist in future affordability, and have less reliance on Government assistance later. 1. Increase the lifetime contribution from $200,000 life time to $300,000 lifetime, a number which reflects the Government of Canada's inflation calculator from 2008 (RDSP inception) until today; 2. Have the inflation rate account for the contribution room each year in the same manner that RRSP, TFSA, CPP and all other accounts and services are increased on an annual basis; and 3. Have these chnges tabled in the Fall budget as there is no request for additional funds from the Treasury, nor is a request to change the tax code, just an opportunity for individuals to save more to assist in future affordability, and have less reliance on Government assistance later.
Government response
Response by the Minister of Finance and National Revenue Signed by The Honourable François-Philippe Champagne The Government of Canada takes seriously the responsibility to help all Canadians get ahead and is especially committed to reducing poverty and increasing financial well-being for persons with disabilities. The Registered Disability Savings Plan (RDSP) is a tax-assisted savings plan that was introduced in 2008 to better enable individuals with severe disabilities, and their families, to save for their long-term financial security. Basic parameters for the plan, including its lifetime contribution limit, reflect recommendations made by the 2006 Expert Panel on Financial Security for Children with Severe Disabilities. To encourage long-term savings through the RDSP, the federal government directly contributes to RDSPs through the Canada Disability Savings Program. This includes a matching Canada Disability Savings Grant of 300%, 200% or 100% (up to a lifetime limit of $70,000) depending on a beneficiary’s adjusted family net income and the amount contributed to their RDSP. The federal government also contributes up to $1,000 per year (up to a lifetime limit of $20,000) to the RDSPs of low-income beneficiaries through the Canada Disability Savings Bond, for which no contributions are required. Investment income earned in an RDSP grows tax-free and is only included in the beneficiary’s income for tax purposes, alongside the grants and bonds, when paid out of an RDSP. The lifetime contribution limit of $200,000 was established in legislation based on recommendations of the Expert Panel. It is sufficient to allow individuals to maximize the RDSP grant and bond program. In addition, individuals can use other tax-preferred vehicles such as the Tax-Free Savings Account, which is a flexible, general-purpose savings vehicle that is available to all adult Canadians to earn tax-free investment income. Each year, more Canadians are using RDSPs to save for themselves or someone with a disability. Fairness will continue to be a top priority as the Government considers further improvements to the tax system for persons with disabilities.