As RRSP season edges closer, Canadians will be looking closely at their portfolios, deciding on their contributions for this year and choosing what they’ll invest in..........

A registered Retirement Savings Plan (RSP) is a Canadian government-regulated program, with special tax benefits. Contributions to your RSP reduce your taxable income. You can pay less tax now and build a larger retirement income for the future.

What are the benefits of RSPs?

1. Tax deductions

Contributions reduce your taxable income, lowering the tax you pay so you can keep more in your pocket.

2. Tax-deferral

Your investments grow tax-deferred while in the RSP.

3. Income splitting

Consider allocating future taxable income as evenly as possible between you and your spouse or common- law partner. This is commonly known as "income-splitting" and can be achieved through a spousal RSP which allows the higher income earning spouse to contribute to an RSP in their spouse's name. This helps even out retirement income and lower your income taxes both now and in retirement.

4. Use it for more than just retirement, Canadian government programs can allow you to access funds in your RSP to help you BUY YOUR FIRST HOME or PURSUE FURTHER EDUCATION.