When it comes to investing for your retirement, Registered Retirement Savings Plans (RRSPs) are a good place to start. The combined benefits of reducing taxable income and potential tax-sheltered compound investment returns over the long term can provide you with a compelling reason to make the most of these savings plans.
An RRSP is a retirement savings plan that you establish, in which you or your spouse or common-law partner can contribute. Deductible RRSP contributions can be used to reduce your tax.
Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan; you generally have to pay tax when you receive payments from the plan.
