What happens to my RRSP when I retire?

Your contributions will remain in the fund until you're 71 years old regardless of your employment status. From there, you'll be required to start withdrawing the money. You can either withdraw it as a lump sum of cash or transfer it over to an annuity or RRIF to get paid a steady income in your retirement years.

How many RRSP accounts can I have?

There is no limit to the number of RRSPs you can have, but there is a limit on how much you can collectively contribute to your RRSPs.

Is there a minimum balance required for an RRSP?

No, there's no minimum balance required to open an RRSP.

Can I have an RRSP with different banks/institutions?

Yes, as long as you don't over-contribute, you can hold RRSPs with different banks or financial institutions.

What's the difference between an RRSP and a tax-free savings account (TFSA)

RRSPs are used to save specifically for your retirement while TFSAs are used to save for just about anything you want. Both let you earn tax-free interest but each comes with its own set of benefits and drawbacks. In particular, RRSPs offer less liquidity but let you defer interest to get tax breaks in high-income-earning years. TFSAs offer easy withdrawals but don't let you claim your contributions as tax deductions. Learn more about RRSPs vs TFSAs .

What's the difference between an RRSP and an RSP?

An RRSP is a specific retirement savings plan, while the term retirement savings plan can refer to a number of retirement vehicles, including an RRSP, TFSA or registered pension plan (RPP).

What's the difference between an RRSP and a savings account?

The main difference between an RRSP and a savings account is that you'll still be taxed on any money you deposit into a savings account as well as the interest you earn on it . Many people have both and RRSP and a savings account, typically a high-interest savings account , so they can save for retirement, and still access some of their funds while earning a little extra.

What's the main difference between an RRSP and a Registered Pension Plan (RPP)?

An RRSP is an individual retirement plan while an RPP is an employer-directed pension plan. Although both have the same goal of providing retirement income, an RPP is established by companies to provide pensions to their workers.

Can you transfer an RRSP to a TFSA?

Unfortunately, you can't transfer money from an RRSP to a TFSA without paying a tax penalty on any amount you transfer. This is because RRSPs give you a tax deferral while TFSAs do not.

There are lots of good reasons why you should consider opening an RRSP, especially if you earn a high income and you want a tax break. If you want to maintain access to your funds and you would prefer to just earn tax-free interest with no tax deferrals, you can look into investing in a TFSA.

What is a spousal RRSP?

A spousal RRSP can be used by married or common-law partners as a way to lower their collective taxes upon retirement. Typically, the higher-earning partner will contribute to the spousal RRSP, which is registered under the name of the partner making less income. The lower-income spouse makes the investment decisions and is the only one who can withdraw from the account. Before retirement, the contributor to the account deducts the contributions to the spousal RRSP from their taxable income just as they do for their individual account.

What is a group RRSP?

A group RRSP is established by a company for its workers, with contributions deducted from their paycheques.

How can I calculate my RRSP contribution room?

You can calculate your RRSP contribution room by multiplying your pre-tax income by 18%. This means if you make $60,000 per year x 18%, then your contribution room for the year would be $10,800. You can also find out how much contribution room you have for the year in question on your previous year's Notice of Assessment. For high-income earners, the maximum contribution is set by the Canada Revenue Agency . For example, the maximum RRSP contribution for 2025 is $32,490. This means that if you earn a high salary, you can only claim the maximum amount, even if it works out to less than 18% of your income.