Canadian registered retirement savings account that generally allows deductible contributions and taxes withdrawals later.
An RRSP, or Registered Retirement Savings Plan, is a Canadian retirement account that typically allows tax-deductible contributions and tax-deferred investment growth until withdrawal.
It plays a role similar to major U.S. retirement wrappers, but within the Canadian tax and retirement system.
RRSPs matter because they directly shape when retirement savings are taxed.
contributions can reduce current taxable income
assets can compound inside the plan without annual tax drag
withdrawals are usually taxed as income later
That makes the RRSP a core Canadian tool for balancing current tax relief against future retirement withdrawals.
Retirement Savings Plan (RSP): Broader retirement-savings concept closely related to RRSP usage.
IRA: U.S. comparison point for individual retirement saving.
Pension: Broader retirement-income structure that may sit beside personal RRSP saving.
Old Age Security (OAS): Canadian public retirement income program often discussed alongside RRSP planning.