Who is eligible for an RRSP?

There is no minimum age to contribute to an RRSP. However, you must be a Canadian resident with a Social Insurance Number (SIN). In addition, you must have earned employment income and filed an income tax return. Finally, you must be under 71 years of age.

How do RRSPs work in retirement?

RRSP contributions end no later than December 31 of the year in which you turn 71. Your RRSP must then be converted to a Registered Retirement Income Fund (RRIF) to begin the disbursement. The tax payable will be determined by your RRSP/RRIF withdrawals and several other factors.

What is the return on an RRSP account?

An RRSP is not an investment and has no expected return or interest rate. Rather, it's a retirement savings plan in which you can make investments that earn a return in the form of interest income, dividends or capital gains.

TFSA or RRSP: Which to choose?

There's no one-size-fits-all answer. Depending on your personal situation and financial goals, it may be best to contribute to your TFSA, your RRSP, or both.

Vincent Morin

Vincent achieved financial independence and retired early (FIRE) at the age of 35. After a career in financial technologies for a large American investment bank, he founded Retraite101, a personal finance site that reaches more than 350,000 unique visitors per year and has more than 30,000 subscribers on social media. Passionate about personal finance, cycling, reading and gardening, he continues to write to inspire and motivate Quebecers to take charge of their finances.

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