Like many Canadians, you may contribute to a Registered Retirement Savings Plan (RRSP) simply to lower your tax bill. Yes, this is a great reason, but did you know there are many other benefits to consider?

Immediate tax savings

Your allowable contributions are tax deductible from your annual income.

Tax-deferred compounding

Your RRSP’s tax-sheltered environment maximizes the compound growth of your savings.

Retirement tax savings

When you withdraw funds for your retirement, not only will you potentially be paying income tax at a lower rate than when you contributed, but you can also create income eligible for both Pension Income Splitting and the Pension Income Credit.

Extra retirement income

Your RRSP can supplement your retirement income so you can afford a comfortable lifestyle when you retire.

Build your retirement nest egg

You can invest funds for your future when you can most afford it – during your peak earning years.

Share your retirement nest egg

You can buy RRSPs for your spouse, and even share your retirement income once you convert your RRSPs – plus, sharing can really lower your family tax bills.

Home Buyer’s Plan

You can withdraw up to $35,000 from your RRSP, without penalty or tax, to be applied to the purchase of your first home. You then have 15 years to repay your RRSP.

Lifelong Learning Plan

You can use up to $20,000 of your RRSP to pay for your own or your common-law partner’s education. If certain conditions are met, the withdrawal is tax-free and can be paid back to your RRSPs over 10 years.

Consider how all these benefits of contributing to an RRSP can make a difference to your retirement savings and more – start contributing or increase your contributions today!