Better understand RRSPs
The Registered Retirement Savings Plan, commonly called RRSP, is a way to save now to supplement your retirement income later.
It offers you two tax advantages:
- Your contributions are deducted from your taxable income.
- The return on your investment is entirely reinvested into your tax-sheltered plan.
Basic RRSP rules
Your RRSP contributions should not exceed a certain percentage of your income. |
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There are four types of RRSPs: individual RRSP, spousal RRSP, group RRSP and self-directed RRSP. |
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There are two ways to invest: through regular instalments made at your own pace, and cash, at your convenience. |
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RRSPs are not only for your retirement
They can be used:
- to buy your first property with the Home Buyers' Plan (HBP);
- to pay your return to school with the Lifelong Learning Plan (LLP);
- as a source of revenue in the event of a period of unemployment or parental leave.
For additional information, read the FAQ-RRSPs section or RRSP Guide (PDF format, 606 KB).
