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Many of you are familiar with the Registered Retirement Savings Plan (RRSP). But did you know that you can invest in your RRSP, for example, with stocks and exchange-traded funds? In fact, it’s these investments that allow you to build a tax-deferred retirement fund and wealth. This article explains how to invest within your RRSP. But first, we’ll take a look at the RRSP and its advantages for retirement savings.
The RRSP is a savings plan registered with the Canada Revenue Agency (CRA) that allows you to save tax-free for your retirement. Your RRSP contributions are tax-deductible, and your investment income is not taxable until withdrawal at retirement. Additionally, your contributions reduce your taxable income and can lead to a tax refund.
There are several types of RRSPs: individual, spousal, group, and self-directed. You can open and contribute to multiple RRSPs, provided that the total contributions do not exceed your contribution room. Furthermore, this contribution room represents 18% of your income from the previous year (up to the annual limit), plus any unused deductions from past years.
RRSPs are often associated with savings products, such as RRSP savings accounts and RRSP GICs. However, you can (should) invest in your RRSP, as returns are not taxed until retirement. You can invest in assets that will grow over the years, such as stocks and exchange-traded funds.
The maximum you can contribute to your RRSP is 18% of your eligible income from the previous year, up to the annual limit ($32,490 in 2025). In addition to this, you can add your unused deductions from previous years. To find out your RRSP contribution room, consult your notice of assessment sent by the CRA.
You can contribute to your RRSP no later than the first 60 days of the following year. For example, for the 2025 tax year, the deadline to contribute to your RRSP is March 2, 2026.
There are many advantages to using RRSPs for retirement savings, including:
Find out more about RRSPs :
You can open an RRSP account at several financial institutions in Canada, including:
The account opening process is quite easy and quick. However, investment choices vary depending on the chosen provider. For example, with a financial advisor, you will generally be limited to your bank’s mutual funds. Conversely, with a brokerage platform, you can invest your RRSP in stocks, exchange-traded funds (ETFs), and more.
There are many ways to invest in an RRSP. However, investment choices vary depending on a number of factors.
First, if you decide to open an RRSP with a financial advisor, he or she will need to assess your current situation, your financial goals and your investor profile. Then, select investments for you, such as guaranteed investment certificates or mutual funds. These funds will have to meet your investor profile: conservative, balanced, growth, etc.
If you decide instead to open an RRSP with a robo-advisor, the investment choices will be different. The robo-advisor will also need to assess your current situation and financial goals, then select investments for you. The selected investments are generally exchange-traded funds, as their management fees are lower than those of mutual funds.
Finally, if you decide to manage your own investments on an online brokerage platform, you can invest your RRSP in a wide range of financial assets: stocks, bonds, exchange-traded funds (ETFs), options, real estate investment trust (REITs), etc. However, to make the right investment choices, you need to know your investor profile. If you don’t already know it, you can use the tool provided by the Autorité des marchés financiers (AMF).
You can invest your RRSP in the stock market using investments managed by robo-advisors or investments you manage yourself on an online brokerage platform.
The most well-known robo-advisors in Canada are: Wealthsimple Managed Investing, Qtrade Guided Portfolios, and Questwealth Portfolios (Questrade)
Online brokerage platforms are primarily offered by financial institutions, such as CIBC Investor’s Edge, and. But also by independent companies, such as Wealthsimple Trade, Questrade, and Qtrade Investor. Furthermore, these independent platforms have been growing rapidly in recent years.
As mentioned earlier, an RRSP is not an investment, nor is it limited to savings. Rather, it is an account in which you can invest.
Here are the eligible investments in an RRSP (the former being savings-related and the latter being investment-related):
Most Canadian financial institutions offer RRSP calculators. These are useful because they allow you to see the growth of your retirement savings over several decades.
Additionally, some calculators also allow you to determine the ideal contribution amount based on your current situation and your retirement goals.
Finally, more advanced RRSP calculators let you estimate your tax refund and see the effect of your RRSP contributions on personal tax credits and benefits, such as the GST/HST credit and the Canada Child Allowance (CCA).
In summary, the RRSP is not an investment and is not limited to savings. Rather, it is an account in which you can make investments. Indeed, you can invest your RRSP in stocks, exchange-traded funds, and more. These investments will grow tax-free over a long period, and hopefully, allow you to maintain the same standard of living in retirement.
The RRSP is a registered plan that allows you to save for your retirement. Your contributions are tax-deductible, and your gains are not taxed until withdrawal in retirement.
There’s no one-size-fits-all answer. Depending on your current situation and goals, it might be better to contribute to your RRSP, your TFSA, or both.
An RRSP is not an investment and does not have an interest rate. It is a savings plan in which you can make investments such as GICs, stocks, and ETFs. These investments are what generate returns (interest income, dividends, and capital gains).
The maximum RRSP contribution for 2025 is the lesser of the annual limit set by the CRA ($32,490 in 2025) or 18% of your eligible income from the previous year (whichever is lower). The deadline to contribute to your RRSP is March 2, 2026.
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