What is an RSP?
An RSP, or Registered Retirement Savings Plan, is an individual savings plan that allows you to make tax-deductible contributions over a number of years. Contributions are invested and earn tax-sheltered income, providing you with the opportunity for enhanced growth of your savings to live on when you retire.
An RSP is a Retirement Savings Plan that is “registered” with Canada Customs and Revenue Agency (CCRA). It allows you to save money for your retirement on a tax-sheltered basis (you don’t pay tax on the income your investments earn until you withdraw the money from your RSP). You can choose to invest your money in several different options including savings accounts, term investments and mutual funds. When you retire, you begin to withdraw the money from your RSP, as you need it, for example from your RIF (Retirement Income Fund).
A registered Retirement Savings Plan (RSP) is a personal savings plan registered with the Canadian federal government allowing you to save for the future on a tax-sheltered basis. What makes RSPs special is that your contributions to it are tax deductible and your portfolio grows tax sheltered. If you are under 70 years of age and earn income, we encourage you to take advantage of the benefits an RSP can offer.
