What is a Registered Retirement Savings Plan, anyway?
A Registered Retirement Savings Plan, or RRSP, is a government-registered savings account that helps Canadians save for the future, usually retirement.
“What does this have to do with me? I’m not even thinking about retirement!”
If you’re Canadian and don’t have an RRSP, it’s time to get one! It’s never too early (or too late!) to start an RRSP. It’s always better to be as prepared as possible, as soon as possible.
Even if you’re late to the savings game, it’s best to start TODAY!
We chatted with Samarth “Sam” Sunil Nadig, Wealth Advisor for Cambrian and Aviso Wealth, to boil RRSPs down to the essentials.
An RRSP itself is a savings account—not an investment product.
“That’s a big misconception,” says Sam. “An RRSP isn’t an investment, it’s an account. You still need to invest the money within it.”
You may have heard suggestions that RRSPs are “pointless” because the government taxes withdrawals. But there’s still value in contributing to an RRSP!
“You’ll likely be in a lower tax bracket in retirement, so you save taxes overall when you have an RRSP,” says Sam.
When you contribute, you receive a tax receipt. When you file your taxes, your income is reduced by the amount you contributed.
Your contribution room in your RRSP is 18% of your income from the previous year, capped at a maximum. For 2025, the limit is $32,490.
The CRA determines the ultimate contribution limits for each year, and you can check them all on the Government of Canada website.
For 2025 contributions, the deadline is March 2, 2026—always 60 calendar days from the end of the previous year, 2025. (March 1 is on a weekend in 2026, so the deadline is moved to the next business day: Monday, March 2.)
“With any investment, the best day to start is today,” says Sam.
“Starting earlier helps you reach your goals by contributing less than if you waited five to 10 years. Growth compounds, and the earlier you begin, the easier it is,” he adds.
There’s also the discipline factor!
Building the habit early helps when life gets more expensive later. You can open an RRSP as soon as you’ve filed your first tax return and have contribution room.
“There’s no limit on how many RRSPs you can have. Even if you already have one elsewhere, we can open a new one,” says Sam.
You can open an RRSP at any Cambrian branch, or if you're investing long-term, Wealth Solutions can help. Call, email, or book an appointment online!
Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc.
We would be happy to discuss your unique situation with you.
Our goal is to make complex topics like this one, simple.
