There are a number of benefits to saving in a Registered Retirement Savings Plan (RRSP). For example:
- Contributions are tax deductible – you claim your RRSP contribution as a deduction on your tax return
- Savings grow tax-free – you won’t pay tax on investment earnings as long as they stay in your RRSP
- You can borrow from your RRSP to buy your first home or pay for your education
There are other benefits which you can read about in 5 reasons to open an RRSP.
You may also be interested in learning about Tax-Free Savings Accounts (TFSAs) and the difference between TFSAs and RRSPs so that you can decide what type of plan suits your investment needs. Here is information about TFSA basics.