Retirement Savings Plans (RRSPs)

The Retirement Savings Plan (RRSP) lets you save for your retirement by deferring taxes on your investment earnings. This means more of your money can stay invested and grow faster. The RRSP represents a key source of future retirement income. Understanding how to make the most of your RRSP—and maximize its important tax advantages—is essential to achieving your retirement goals. The following are highlights of the RRSP:

• Contributions to a RRSP are tax-deductible.
• Any income earned on investments is tax-deferred, as long as it remains in the RRSP.
• Unused RRSP contribution room can be carried forward from years of lower income & used in the future when your income may be higher. This will provide tax savings when you’re in a higher tax bracket.
• If you earn more than your spouse, contributing to a spousal RRSP may help reduce the total tax you pay.