1. What is an RRSP?

A Registered Retirement Savings Plan (RRSP) is an account designed to help you save and invest for retirement. You contribute during your working years, the money can grow over time, and you withdraw it later when you need income.

The main benefits are:

  • Tax advantages on contributions and growth
  • A dedicated place for retirement savings, separate from day-to-day spending

2. Why does starting early matter?

With retirement savings, time is one of your biggest advantages. Regular contributions over many years allow compounding — growth building on top of growth.

Even modest monthly amounts, started early and kept consistent, can grow into a meaningful retirement balance decades later.

3. How much should I contribute?

There’s no single “right” number. It depends on:

  • your income,
  • other pensions or retirement savings,
  • RESP and mortgage priorities, and
  • the lifestyle you want in retirement.

Many families start with a comfortable monthly amount and increase it gradually as income rises or debts fall.

Many families also compare RRSP saving with TFSA strategies depending on income and tax situation.

4. Where do RRSP contributions go?

An RRSP is a container, not an investment itself. Inside an RRSP, you might hold:

  • mutual funds or ETFs,
  • stocks or bonds, or
  • other investments offered by your provider.

Your investment mix affects both long-term growth and how much volatility you experience along the way.

5. Seeing the impact of a monthly contribution

To explore how RRSP savings could grow over time, try the RRSP Growth Starter. You can:

  • enter your current age and retirement age,
  • add your current RRSP balance,
  • choose a monthly contribution, and
  • test realistic return assumptions.

The projection won’t be perfect, but it helps you understand the long-term effect of steady saving.

6. How does RRSP fit with everything else?

For many families, RRSP saving fits alongside:

  • a mortgage,
  • RESP contributions for children,
  • workplace pensions, and
  • emergency and short-term savings.

There’s often a trade-off between goals. Understanding how each piece works makes those choices feel more manageable.

7. A simple RRSP starting approach

  • Start with a realistic monthly contribution
  • Increase it as income grows or debts shrink
  • Review your plan once per year

If retirement is competing with education savings, see our RESP basics guide for a clear comparison.

Using the RRSP Growth Starter alongside the Mortgage Booster and helps you see how decisions interact over time.

Quick reminder: This guide is educational only and doesn’t replace professional financial or tax advice.

Want to see this with real numbers?

Explore this with a simple tool

Test different RRSP contribution levels and return assumptions to see how your retirement savings might grow.

Try the RRSP Growth Starter →