A Registered Retirement Savings Plan, commonly referred to as an RRSP, is a personal savings plan registered with the Canadian federal government allowing you to save for the future.

Tax benefits are the main motivation for contributing to an RRSP. By not taxing Canadians on the funds they contribute to their RRSPs, the government rewards those who save for retirement and encourages further saving. However, the government doesn’t do this out of generosity.

Because of the government costs involved in funding poorly planned retirements, they recognize the importance of ensuring that Canadians make their own provisions for their post-work lives.