An RRSP is a type of account that you can open at any bank. What you have inside that account is up to you. Could be stocks, cash, mutual funds - you pick.

When you add money to an RRSP, you get back some of the tax you've paid to the government.

So how does it work?

Let's start with the basics: as you make money, the government takes a slice of it as tax. The more you make, the larger the slices.

If you add some of the money you've made to an RRSP, the government gives you back the tax slice they took.

Here's the catch: when you eventually take money out of an RRSP, the government will still take a slice as tax.

But if you wait and take the money out in retirement, it'll be a much smaller slice because you'll be making less money (you'll be retired 🏖️)

Here's another great reason to use an RRSP: when your money's inside, it's safe from the tax man.

If your money grows while inside the RRSP, you won't be taxed on that growth. But you'll eventually pay that tax slice when you take any money out.

Wondering how much tax you paid and how much you can get back?

We can help you with our fancy calculator↗