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Registered Retirement Savings Plan (RRSP)

Registered Retirement Savings Plan (RRSP)

Save and invest wisely today. Live your best life in retirement.

What is an RRSP?

An RRSP (Registered Retirement Savings Plan) in an investment account that is registered with the Canadian Federal Government. An RRSP, or simply, RSP, helps you save for retirement by growing your money and sheltering it from taxes. Each dollar you contribute to your RRSP (up to a defined maximum) can be deducted from that year’s income, potentially reducing the amount of tax you pay.

The investment income you earn within your RRSP grows on a tax-deferred basis, so unlike non-registered investments, you don’t pay taxes on your retirement savings until you withdraw them.

What else can I use my RRSP for?

In addition to saving for retirement, there are a couple of other tax-efficient ways to use your RRSP. The Home Buyers' Plan lets you borrow up to $35,000 from your RRSP to put toward your first home purchase. Additionally, the Lifelong Learning Plan (LLP) lets you to withdraw up to $10,000 per year to finance education costs.

Benefits of an RRSP

Tax deductions

Contributions made to your RRSP are tax-deductible and can reduce the amount of tax you pay.

Tax deferred savings

You don’t pay tax on any interest, dividends, or capital gains that your investments earn inside your RRSP.

Unused contributions

You’re allowed to carry forward any unused contributions from previous years, which can help as your income increases.

A variety of investment options

Build your RRSP using a variety of investment and savings options – including GICs, mutual funds, and more.

Spousal RRSP income splitting

If one spouse earns more income than the other, the higher earner can reduce taxes by contributing to a spousal RRSP.

Government programs

The Home Buyers Plan and Lifelong Learning plan let you borrow funds from your RRSP without immediate tax implications.

RRSP contribution and withdrawal rules

RRSP contribution limits

There is a maximum amount that you’re allowed to contribute to your RRSP each year. This is known as your RRSP contribution or deduction limit, which you can find on your previous year’s Notice of Assessment.

The maximum contribution you can make is 18% of your previous year’s earned income, up to a maximum of $31,560 for 2024, minus any pension adjustment.

Find out more by visiting the Canada Revenue Agency

Who can contribute to an RRSP?

If you are a Canadian resident with with employment income as shown on your tax return you can contribute to an RRSP.

There is no minimum age required to contribute, but you can only contribute to an RRSP up until the end of the year that you turn 71. After that, you’ll need to convert your RRSP to a RRIF (Registered Retirement Income Fund).

What about unused RRSP contribution room?

If you don’t make the maximum allowable contribution each year, you’re allowed to carry RRSP contribution room forward indefinitely. This is beneficial, particularly in the years when your income is higher and you can contribute more.

In some cases, it can make sense to borrow for your RRSP using a loan or line of credit, however, the easiest way to make RRSP contributions is by setting up automated contributions.

Explore the benefits of a pre-authorized contribution plan

RRSP withdrawal rules

Withdrawals from your RRSP are permitted provided that the funds are not in a “locked in” type of RRSP. However, withdrawals are subject to a withholding tax and the proceeds will count as part of your income for that year (meaning you pay income tax on it).

There are two ways to withdraw from your RRSP without tax implications. One is through the Home Buyers' Plan and the other is the Lifelong Learning Plan.

Find out how to participate in the Home Buyers' Plan

Learn more about the Lifelong Learning Plan

Types of saving and investing options for your RRSP

An RRSP itself isn’t an investment. It’s more of an umbrella account, under which you can hold different types of investments. You can build your RRSP with a variety of investing products, such as GICs, mutual funds, ETFs, stocks and more.

Guaranteed investment certificates

A risk-free way to grow your money. A Guaranteed Investment Certificate (GIC) keeps your principal investment safe and comes with a guaranteed rate of return. Choose from a variety of low-risk investments to build a balanced portfolio.

Explore GICs
High interest savings account

A high interest savings account (or HISA) is a risk-free place to hold funds within your RRSP. In some ways, it functions like a regular savings account that pays you interest on your balance. You can move RRSP savings to a GIC or other types of investments at any time.

Explore the HISA
Three generations; a father, his son, and his grandson out for a hike
Mutual funds

A mutual fund is a collection of investments like stocks, bonds, and other funds. It lets you pool your money together with other investors, making it easier for you to own a more diverse array of investments.

Explore mutual funds
Frequently asked questions

Questions? There are several ways to get in touch

Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual funds, other securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated.