Maybe you don't have the same thing?
What is a Registered Retirement Savings Plan (RRSP)? | RRSPs (for retirement) | Investor Education Fund
How much can I put into my RRSP?
There are rules about how much you can contribute each year. You can put more money into your RRSP as your job income grows. To find out how much you can contribute this year, look at the statement you got back from the government when you did your income taxes last April.
How do I reduce my taxes?
When you put money into your RRSP account, you get a receipt proving how much you contributed. You donít pay income tax on this amount at tax time if it stays in your RRSP. You only pay the tax when you take the money back out of the plan.
If you borrow money from your RRSP for a home or education, you will have to pay it back, but you will have a number of years to do so.
- How do I make my savings grow?
You use the money in your RRSP account to buy investments. You can choose from many kinds of investments. The money you make on your investments is not taxed, until you take it out of the plan.
- Can I spend the money in my RRSP before I retire?
The answer is yes, but you will have to pay the tax you owe unless you borrow the money to:
- Buy a first home: You can use up to $20,000 from your RRSP for a down payment on your first home.
- Pay for education: You can use some of the money in your RRSP to help you or your spouse go back to school. There are rules about how much you can take out each year.
Remember: The main reason to get an RRSP is to save for retirement. For many Canadians, RRSPs will be an important part of their retirement income.
I should add we also invest in tax free savings accounts, not only RRSPs.
And that this year we have set up auto deductions to go to our investment accounts instead of saving ourselves.