Tax savings now
Every dollar you contribute to an RRSP can reduce your taxable income for that year, which means you pay less tax.
Your initial investment and investment earnings continue to grow in your RRSP, sheltered from tax until money is withdrawn. This helps you grow your investments and reach your retirement goals sooner.
Flexible for your goals
You can borrow from your RRSP for some of life's major milestones - buying your first home through the Home Buyers' Planoffered by the Government of Canada and pursuing an education through the Lifelong Learning Planoffered by the Government of Canada.
Spousal income splitting
A spouse in a higher tax bracket can contribute to a Spousal RRSP in the name of their lower income spouse. This means the higher earning spouse can reduce their taxable income now and the retirement income may be taxed at a lower rate when it is withdrawn from the Spousal RRSP, subject to a minimum waiting period.