A Registered Retirement Savings Plan first was introduced in the Canadian investment landscape in 1957 and since then has become part of our culture when considering products to help you save for the future. An RRSP is a tax sheltered retirement savings account that allows you to contribute into it each year and then deducting this amount from your taxable income. Limits are set each year and will be based on your income (usually 18% of your previous year’s earned income to a maximum amount set annually by the CRA). Any unused contribution room can be carried forward to future years.

Your RRSP can hold various investment products, and all interest, dividends or capital gains earned within your account can accumulate tax free until you begin withdrawing from the account. If you hold the account until retirement, you will be forced to make minimum withdrawals at age 71, at which time, it will be switched into a RRIF, Registered Retirement Income Fund.