Now is the time to start with your retirement plan.

Save for your retirement with an RRSP.

A Registered Retirement Savings Plan (RRSP) is one of the best ways to save towards retirement. When you make a contribution to your RRSP, the amount you contribute is deducted from your taxable income thereby lowering your taxes.

The contributions you make can be invested into a variety of growth instruments based on your preference - RRSP savings deposits, treasury bills, guaranteed investment certificates (GICs), mutual funds, bonds, and even equities. The growth of your money in an RRSP is sheltered from tax and may grow much faster, therefore the income earned in your RRSP is not taxed until it is withdrawn.

Setting up regular contributions to an RRSP is easy

Opening an RRSP is a tax-smart move—and making regular, automatic contributions to your RRSP is a great way to maximize your tax savings. That's because you'll save more money in the long-run than if you make a lump-sum annual contribution once per year.

Enjoy immediate tax benefits with your contribution

The chart below shows the immediate tax benefit of making an RRSP contribution for an individual with $30,000 in taxable income, taxed at a typical combined federal and provincial tax rate.

Savings That Benefit You Now

	$0 RRSP Contribution	$2,000 RRSP Contribution
Taxable Income	$30,000	$28,000
Combined Federal and Provincial Tax	$4,550	$4,100
Deferred Tax	$0	$450

Chart is for illustrative purposes only.

Starting Early Pays Off

If retirement is many years away for you, you have a unique opportunity to maximize the advantages of tax-deferred compound growth that an RRSP offers. Let’s take the case of twins Catherine and Peter:

By contributing $1,800 per year to her RRSP over nine years, beginning in her 20s, Catherine ends up with a larger nest egg than does her twin, Peter, who starts saving money in his mid-30s and contributes $1,800 per year over 29 years.

Financial planning services and investment products such as mutual funds are offered through Royal Mutual Funds Inc. (RMFI) and guaranteed investment certificates and credit products are offered through Royal Bank of Canada. RMFI, RBC Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada, The Royal Trust Company and Phillips, Hager & North Investment Management Ltd. are separate corporate entities which are affiliated. Royal Mutual Funds Inc. is licensed as a financial services firm in the province of Quebec.
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