Saving for retirement is important. This is why the Canadian Government has created Registered Retirement Savings Plans Edmonton residents can use to save money for their retirement. Also known as RRSPs, they are an investment vehicle that allows your money to grow tax free until you retire.
With an RRSP, Canadians can set aside a portion of their earnings, up to $25,370 per year, which is then invested in various stocks, bonds and mutual funds. Contributing to an RRSP allows you to reduce your taxable income and you do not have to pay any tax until you start withdrawing from the RRSP. In addition, your employer can make contributions to your RRSP on your behalf, which is a good way to save money faster. A RRSP can be set up with any bank or financial institution and you remain in control of it.