Registered Retirement Savings Plans (RRSPs)¹

An efficient way to save for your retirement 

Using Registered Retirement Savings Plans (RRSPs) is a very effective way to save for retirement and reduce taxable income to save for your longer term goals. Your RRSP contributions may be tax deductible, meaning that money earned in your plan could grow tax-deferred until you retire, which means your retirement savings can grow faster. 

The benefits of RRSPs 

  • Your savings and any interest, capital gains and dividends grow on a tax-deferred basis
  • Contributions may be tax-deductible
  • The annual contribution limit for 2021 is 18% of your previous year's earned income up to a limit of $27,830
  • All three types of RRSPs are available with a U.S. dollar side – ideal if you wish to trade and hold U.S. securities and cash in your registered accounts 
  • RRSP investment options include equities, bonds, mutual funds, treasury bills, savings accounts and GICs

Three RRSP accounts to choose from 

  • Individual RRSP account registered in your name. The investments held within this account, and any associated tax benefits, belong to you.
  • Direct some or all of your RRSP contribution to a spousal RRSP. You still get the tax deduction, but the plan is registered in your spouse's name.
  • LIRAs & LRSPs (Locked-in Retirement Accounts or Locked-in RRSPs) are usually opened following the transfer of a company pension and account holders cannot access funds prior to the age of 55.

RRSPs remain one of the best ways to save for retirement 

RRSPs were created to help Canadians achieve more comfortable and financially secure retirements. But there is a powerful benefit to enjoy along the way to that goal: RRSP contributions are generally tax deductible, reducing your taxable income. 

The annual contribution limit is 18% of your previous year's earned income, up to a limit of $27,830 for the 2021 tax year. Check your Canada Revenue Agency (CRA) account or CRA Notice of Assessment for details.

Helpful articles and videos

Find more free educational tools and resources at Scotia iTRADE® U 

RRSP education video 

Answer a few simple questions and get a personalized video to help you learn more about RRSPs. 

TFSAs and RRSPs: key benefits and differences

A quick comparison on the key benefits and differences between RRSPs and TFSAs 

Frequently asked questions

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