What is an RRSP?

The main advantage of an RRSP is that account holders can defer the taxes on their contributions and investment earnings until retirement, when gross income is likely to drop, putting the account holder in a lower tax bracket.

In French, an RRSP is known as a régime enregistré d’épargne‑retraite (REER). 

Example: “The deadline to contribute to this year’s RRSP is next March.”

Read more on RRSPs:

• What’s my RRSP contribution limit?
  Find out with our handy calculator.
• What to consider if you still have RRSP contribution room
  With just weeks left before the contribution deadline, a Certified Financial Planner rounds up key facts and common RRSP myths. 
• The best RRSPs in Canada
  You can hold a wide variety of investments inside a Registered Retirement Savings Plan (RRSP). This guide will help you choose the ones that fit your risk tolerance and investment goals.
• Reasons to consider early RRSP and RRIF withdrawals
  I get a lot of reader-submitted questions about early RRSP and RRIF withdrawals and how much to take out. Here is a primer.
• How much to take out of your RRSP in your 60s
  Although RRSP withdrawals can be deferred no later than age 72, it may be necessary or advisable to make withdrawals before then.
• Changing attitudes towards RRSP contributions in Canada: It’s complicated
  Financial instability created by the pandemic is shifting why and where people choose to save or invest.

About MoneySense Editors

MoneySense editors and journalists work closely with leading personal finance experts in Canada. Since 1999, our award-winning magazine has helped Canadians navigate money matters.

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