*Written in collaboration with the LRCSS Family Engagement Committee
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Many parents of a child with autism worry about their child’s financial future, especially as they transition into adulthood. With the right planning, you can set them up for financial success.
Why Financial Planning Matters for Autism Families
You may be asking, “Who will support my child financially when I’m no longer here?”
Without a financial safety net, children with disabilities may face limited access to housing, care, and services. As a parent that is a scary thought.
Planning for the 18+ Transition
As your child approaches adulthood, securing government support becomes essential for maintaining their independence and financial stability. Having an active Disability Tax Credit (DTC) opens doors to crucial adult benefits (requiring an application through Service Canada and annual tax filing upon turning 18):
Canada Disability Benefit: Supplying up to $204.20/month in income support for adults aged 18–64.
RDSP Withdrawals: Allowing growth from grants and bonds to be accessed later in life to ensure long-term care and housing security.
How the RDSP Works – And Why It’s a Game-Changer
The Registered Disability Savings Plan (RDSP) is a long-term savings plan designed to help people with disabilities and their families save for the future. The key benefits include:
Government Contributions: The Canadian government matches contributions through the Canada Disability Savings Grant (CDSG) (up to $3,500/year, max $70,000 lifetime).
Canada Disability Savings Bond (CDSB): Lower-income families may receive up to $1,000/year ($20,000 lifetime) even without contributing.
Tax-Deferred Growth: While contributions are not tax-deductible, investment growth is tax-free until withdrawn.
Withdrawal Rules: Funds can be accessed at any time (subject to the 10-year repayment rule for government contributions), and mandatory payouts (LDAPs) must begin by age 60.
How to Get Started Today
Apply for the Disability Tax Credit (DTC) – It’s the first step toward RDSP eligibility.
Open an RDSP through a financial institution – Many banks and credit unions offer them.
Contribute what you can – Even small amounts unlock matching grants.
Planning for the future is essential. Consult with an investment advisor or financial planner who understands disability-related benefits to help build a solid financial foundation for your child.
Disclaimer: Lake Ridge Community Support Services is not a financial, insurance, or tax expert. While this information is thoroughly researched and provided as a supportive guide, families should seek professional expert advice tailored to their specific financial or legal situation. Please note that details and figures mentioned in this post are accurate as of the publication date and may change over time.