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Whether retirement is just around the corner or feels like decades away, you’ve likely heard that it’s never too early to save. That’s certainly true, and it’s also never too late to start.

Grow your savings tax free with a Registered Retirement Savings Plan (RRSP), so that when you’re ready to retire, your ‘pay cheque’ will keep coming in.

RRSPs can offer you even further flexibility for life’s major expenses, as funds are also eligible for Canadian Government programs that can help you buy your first home, or pay for further education.

As a general rule, consider contributing a portion of your income each year into your RRSP. By savings well in advance, you’ll be able to enter retirement more comfortably—knowing you have savings to suit your lifestyle.

The contribution limit for RRSPs changes every year, and you’ll be able to find the amount on your most recent tax return.

Understand the RRSP basics

With an RRSP, watch your savings grow tax free. You won’t pay tax on the money you contribute until you’re ready to make a withdrawal.

Any Canadian (including non-residents) who has employment income and files a tax return can contribute to an RRSP. There is no minimum age to contribute.

Invest up to your RRSP contribution limit, which will be noted on your most recent tax return. Your unused annual contribution rolls over for use in future years.

Contribute until December 31 of the year that you turn 71.

You receive a tax receipt for contributions to reduce your taxable income.

Income from an RRSP is taxable only when withdrawn.

Spousal and individual plans are available.

If you're starting small, start saving your money in an RRSP High-Interest Savings Account. With a minimum $1,000, you also have the option to save with an RRSP Fixed GIC.

Did you know?

There is no minimum age to get started on RRSP contributions. For young families who are planning well into the future, this means you can help your children save with RRSPs, as long as they earned an income in the previous tax year.

For teens who have started their first job, this is a great way to learn about finances, saving and the value of investing. When it comes time to buy their first house as an adult, they can even make use of that RRSP contribution for a down payment via the Home Buyers’ Plan (HBP).

Later in life, this extra head start can make a world of difference.