A Registered Retirement Savings Plan (RRSP) is the government’s way of encouraging you to save for retirement. You can contribute to your retirement account and invest in professionally managed investments. When you have saved enough and are ready to retire, your funds can easily be converted to a steady stream of retirement income. This is different from a regular account because it lets you save money for your retirement and lowers your income taxes.

When you put money into your RRSP, you can deduct that amount from your taxable income for that year. You don't pay tax on the money you put into an RRSP account, or any interest you earn on it, until you take the money out.

RRSPs help you save for the long-term, but in an emergency you can take out the money.

A registered retirement savings plan, or RRSP, is a savings plan for individuals which allows them to defer tax on money to be used for retirement. Contribution limits for registered retirement savings plans are based on income and are tax deductible at the time of deposit. Tax is paid when investment and interest or dividend income is withdrawn.

Remember, though, no matter what your age, if you haven't put together a retirement plan, now is the best time to start.

Advantages for opt RRSP:
• Get money back or tax saving
• More Growth
• Tax-free compounding
• Protected from creditors