A Registered Retirement Savings Plan (RRSP) is a personal savings plan registered with the Canadian federal government allowing you to save for the future on a tax-sheltered basis.

An RRSP is an investment portfolio – your designated retirement savings. It can contain a variety of investments including: RRSP savings deposits, treasury bills, guaranteed investment certificates (GICs), mutual funds, bonds, and even equities.

Benefits Of An RESP

1. By contributing to an RRSP throughout your working career, you’ll realize immediate tax benefits at a time when your income is generally highest.
2. The income earned in your RRSP is not taxed until it is withdrawn.
3. Special features of RRSPs allow you to do further tax planning or use your RRSP to fund specific life events.

Every individual who works, files a Canadian income tax return, and looks forward to secure retirement should consider having an RRSP.