CPP, OAS, and GIS: Maximize your public retirement benefits with our CPP, OAS, and GIS Guide.
An RESP (Registered Education Savings Plan) can hold up to $50,000 per child and provides up to $7,200 in free government grants. Here’s your complete guide.
RESP Quick Facts
| Feature | Details |
|---|---|
| Lifetime contribution limit | $50,000 per beneficiary |
| Annual limit | None (but grant-based strategy is $2,500) |
| Tax on growth | Deferred until withdrawal |
| Government grant (CESG) | Up to $7,200 per child |
| Who can contribute | Anyone (parents, grandparents, etc.) |
Canada Education Savings Grant (CESG)
| Contribution | Grant (20% Match) |
|---|---|
| $2,500/year | $500/year |
| Over 18 years | $7,200 lifetime max |
| Catch-up room | Up to $1,000/year (for missed years) |
CESG is free money — always contribute at least $2,500/year to maximize it.
Additional Government Grants
| Grant | Amount | Eligibility |
|---|---|---|
| Basic CESG | $500/year | All families |
| Additional CESG | $50-$100/year | Income under $53,359 |
| Canada Learning Bond (CLB) | $500 + $100/year | Low income families |
| Provincial grants | Varies | BC, Quebec, Saskatchewan |
RESP Contribution Strategy
| Child’s Age | Strategy |
|---|---|
| Birth | Open RESP immediately |
| 0-17 | Contribute $2,500/year for CESG |
| Birth (lump sum) | $16,500 in year 1, then $2,500/year |
| Late start | Contribute $5,000/year to catch up |
Optimal Contribution Timeline
| Scenario | Annual Contribution | Total Grants |
|---|---|---|
| $2,500/year for 18 years | $45,000 | $7,200 |
| Lump sum $50,000 | $50,000 | $1,500-$3,000 |
| $5,000/year (catch-up) | $50,000 | Up to $7,200 |
Spreading contributions maximizes grants.
CESG Catch-Up Rules
If you missed years:
- Maximum CESG in one year: $1,000 (not $500)
- Requires $5,000 contribution to get $1,000 CESG
- Works until lifetime $7,200 is reached
RESP Growth Example
| Starting Age | Annual | Total | CESG | Value at 18 (5%) |
|---|---|---|---|---|
| Birth | $2,500 | $45,000 | $7,200 | ~$97,000 |
| Age 5 | $2,500 | $32,500 | $6,500 | ~$57,000 |
| Age 10 | $5,000 | $40,000 | $7,000 | ~$53,000 |
Starting early = more growth time.
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