An RRSP is a Registered Retirement Savings Plan—a government-approved account that helps Canadians save for retirement while reducing their tax bill today.

​

Key Features of RRSP:
   •    Contributions are tax-deductible
(You lower your taxable income, which can mean a big tax refund.)

   •    Investments grow tax-free
(No tax on interest, dividends, or capital gains while inside the account.)

   •    Withdrawals are taxed
(You’ll pay tax when you take money out—ideally when your income is lower in retirement.)

​

Contribution Limit:
   •    Up to 18% of your previous year’s income
(max limit for 2025 is $31,560, but it changes annually)

   •    Unused room carries forward

​

Extra Uses:
   •    Home Buyers’ Plan (HBP):
Withdraw up to $35,000 tax-free to buy your first home (must pay it back over 15 years).

   •    Lifelong Learning Plan (LLP):
Withdraw up to $20,000 to go back to school (repay over 10 years).

​

Why it matters:

It’s one of the most powerful retirement tools in Canada—save now, invest smart, and pay less tax.