A Registered Retirement Savings Plan (abbreviated to an RRSP) is a savings account which offers you a simple way to put money away for your retirement. A key feature of an RRSP is the fact that it is registered with the federal government. Here, we will explore five notable reasons to save for your retirement in this way.
- Your investment is tax free
This is a great feature of an RRSP. Providing that you keep your investment earnings in the plan, you won’t pay any tax on them. This, of course, means that your savings have the potential to grow at a faster rate.