The RRSP

Registered Retirement Savings Plan

A retirement savings account: contributions lower your tax today, and money you take out later is taxed as income.

The 2026 numbers

Numbers checked against the official sources on September 29, 2026.

Saving for retirement while paying less tax now.
Moving income from a year when you’re highly taxed to one when you’ll be taxed less, often retirement.
Funding a first home through the , with no tax on the withdrawal.

New room equals 18% of last year’s earned income, up to $33,810 for 2026, minus your pension adjustment if you have a pension plan at work. Unused room carries forward.
Every dollar you contribute is deducted from your income: the tax you save equals your marginal rate.
Investments grow tax-sheltered while they stay in the account. Every withdrawal is added to that year’s income and taxed.
You can go $2,000 over your room without a penalty; beyond that, the excess costs 1% a month.
By the end of the year you turn 71, the RRSP must be converted, most often into a .

Employment income of $60,000 in Québec

You contribute $5,000 to your RRSP this year.

Province or territoryExample: Québec

Calculated with 2026 federal and provincial tax. The saving usually arrives as a refund in the spring: reinvesting it is what makes the RRSP pay off.

Fictional example, round numbers.

Spending the tax refund: reinvesting it, in the RRSP or a , is what makes the RRSP worth it.
Contributing on a low income: the is worth little, and future withdrawals could reduce the . The TFSA is often the better choice then.
Withdrawing before retirement outside the HBP: the withdrawal is taxed and the room you used doesn’t come back.
Forgetting the pension adjustment: with a , your room can be far below 18% of your pay.