RRSP

Save for retirement while reducing your taxes today.

An RRSP is one of the most powerful financial tools available to Canadians who want to save for retirement. It’s a government-registered plan that lets you grow your investments tax-deferred, while also giving you a tax deduction today.

Whether you're just starting your career or planning for the next phase of life, an RRSP helps you build long-term wealth and reduce your tax burden.

How Does an RRSP Work?

You contribute money into your RRSP each year (up to your contribution limit).

Your contributions are tax-deductible —they reduce your taxable income.

The money inside the plan grows tax-free until you withdraw it.

Withdrawals are taxed as income, ideally when you're retired and in a lower tax bracket.

Your RRSP can hold a variety of investments, including:

Mutual funds

GICs (Guaranteed Investment Certificates)

Stocks and bonds

ETFs

Segregated funds (offered by insurance companies)

Why Invest in an RRSP?

• Lower your income taxes today by claiming RRSP contributions as deductions
• Grow your retirement savings faster with tax-deferred investment growth
• Flexible investment options to match your risk level
• Use funds for a first home or education (through special government programs)
• Carry forward unused contribution room to future years

Special RRSP Programs

1. Home Buyers’ Plan (HBP)

• Withdraw up to $60,000 from your RRSP tax-free to buy your first home
• Must repay over 15 years, with no interest

2. Lifelong Learning Plan (LLP)

• Withdraw up to $10,000 per year (max $20,000) to finance full-time education for you or your spouse
• Must repay over 10 years

Who Should Open an RRSP?

• Working professionals looking to reduce their tax bill and build wealth
• Young adults starting to invest early for compound growth
• Home buyers planning to use the HBP
• Self-employed individuals or small business owners who don’t have pensions
• Anyone looking to supplement their employer pension or CPP

Key Features

• Annual contribution limit is 18% of previous year’s income, up to a government-set maximum
• Contributions can be made until age 71
• Spousal RRSPs can help split retirement income and reduce taxes later
• Unused contribution room carries forward indefinitely
• Easy to set up through a financial advisor or insurance-based investment plan