Six RRSP benefits you probably didn't know about
Many of us understand the value of the Registered Retirement Savings Plan (RRSP): almost six million Canadians make RRSP contributions every year. Most of us also know about the tax benefits of RRSP contributions and that it’s an extremely versatile and effective retirement planning tool.
RRSPs are typically used for long-term savings, with the money we contribute bringing us a tax deduction. Contributed funds can also grow on a tax-deferred basis until we take those dollars out in retirement. We’re then taxed based on our personal income tax rate in the year we withdraw the money (which, in retirement, should be lower than when we contributed and got the original tax break).