RRSPs are also called RSP(Retirement savings plan). In 1957 Canadian Govt introduced RRSP with an intention to provide people an investment vehicle which allow them to invest their savings on tax deferred basis for their retirements.
To encourage and help Canadians to accumulate more funds for retirement, government allows to deduct contributions from total income, which reduces the total taxable income for the taxpayers. This tax savings mechanism further generates funds for investing into RRSP accounts for Canadian.
Tax savings, Tax deferred growth and wisely investing can help one to accumulate his/her retirement fund fast and much bigger than trying to accumulate funds outside RRSP accounts.
While this account is a powerful tool available for Canadians to save taxes and invest more for retirement, it has very well-defined rules and guidelines which one must be familiar with before start investing into this account.
To find out how this account can be beneficial for you in your retirement planning and saving in taxes a no obligation session can be booked by calling us at 905 607 5000.