It’s time to rethink your clients’ pre-authorized debits (PAD) or to plan making an additional lump-sum contribution for Diploma contract holders1. Take advantage of the back-to-school season to reconnect with your clients who have made the wise choice of opening a Registered Education Savings Plan (RESP)!
In the wake of the 1st initiative conducted in June, this is the perfect time to suggest to your clients that they increase their savings if:
- they contribute to one or more RESPs through pre-authorized debits (PADs)
- they are not maximizing their government grants, and
- they have not increased their contributions since at least 20212
Increased RESP contributions: a winning strategy for you and your clients!
Ideally, your clients' savings contributions should keep pace with inflation to help them stay on track with their financial goals. This strategy is all the more effective during periods of high inflation, such as the one we've just experienced, which drives up the cost of education.
Three benefits for your clients:
- Avoid falling behind on their savings targets, which could influence the educational choices of their children or grandchildren
- Act now to combat inflation and forestall the effects of the rising cost of education
- Receive more government grants and benefit from increased return potential
It’s your move!
- Talk to your clients about increasing their pre-authorized debits or making a lump-sum contribution if they have not done so in recent years and are not already maximizing their government grants
- Reap the benefits of growing assets under management over time
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💡By contributing $208.33/month ($2,500/year) per beneficiary to an RESP, your clients can maximize the amount of government grants they receive. |
In the next few days, we will be sending an email to advisors whose clients have not increased their RESP contributions since 2021 and whose monthly contributions are less than $187. The email will contain the procedure for obtaining your client list.
Whether or not you have clients in this situation, this is an excellent opportunity to reassess whether your clients' PADs are still in line with their savings objectives.
Here are the forms to use if your clients wish to increase their contributions, depending on the plans in which they are invested:
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Savings plan |
Forms |
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RESP |
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RRSP, TFSA et non-registered plan |
1 The Diploma product no longer allows PAD modification, so we recommend that you consider a lump-sum deposit to maximize government grants.
2 Internal data
