RRSP
Estimate potential RRSP growth based on your contribution, tax rate, and time horizon.
What is an RRSP?
A Registered Retirement Savings Plan (RRSP) is a government-registered account designed to help Canadians save for retirement. Contributions may be tax-deductible, investments grow on a tax-deferred basis, and withdrawals are typically made later in life when income may be lower.
Why people use RRSPs
- Produces taxable income
- Tax-deferred growth inside the plan
- Retirement income planning
- Options like the Home Buyers’ Plan (HBP) and Lifelong Learning Plan (LLP)
How to think about it
RRSPs are often strongest when your tax rate today is higher than your expected tax rate in retirement. The goal is to save tax now and withdraw later at a lower rate, while your investments grow tax-deferred.