What is an RRSP?
An RRSP is a savings plan that helps you retire on your terms. Your investments grow on a tax-deferred basis, helping you build your nest egg so you can live comfortably in retirement. For the 2024 tax year, the RRSP contribution deadline is March 3, 2025.
Benefits of an RRSP
Lower your annual tax bill
Any money you put into your RRSP within your contribution limit can be deducted from your annual income for that year or a later year. It’s like getting a nice discount at tax time.
Tax-sheltered growth
Your RRSP investment gains grow tax-free until withdrawn. When it comes time to take money out during retirement, you’ll likely do so at a lower tax rate.
Pay for your first home or education
You can borrow money from your RRSP to help pay for a down payment or education. Learn more about the Home Buyers’ Plan and Lifelong Learning Plan.
Unlimited carry-over
The maximum amount you can contribute each year is set by the government and depends on your income. If you have any unused contribution room, it carries over year after year.
An RRSP holds income-generating investment products. The type of investment products you choose depends on your risk tolerance and when you’re planning to retire.
Explore our investment products:
Segregated funds
Mutual funds
The earlier you start contributing to an RRSP the better, thanks to compound returns and general upward market trends over time. You can open an account at any age until you turn 71.
Money can be added to your account throughout the year, or you can make a lump sum contribution.
The deadline to contribute is 60 days after December 31. You must stop contributing the year you turn 71.
When you retire, you can convert your RRSP account to a Registered Retirement Income Fund (RRIF). An RRIF is like an extension of your RRSP, but instead of depositing money into your account, you’re taking money out to use throughout retirement.
Here are a few other things to keep in mind:
- Withdrawals from your RRIF are considered part of your taxable income
- Early withdrawals from your RRSP will increase your tax bill and be subject to a withholding tax rate
- Withdrawals can affect your eligibility for government benefits
Find out how much you need to save for retirement.
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