A Registered Retirement Savings Plan (RRSP) is a special type of account in Canada that helps people save money for retirement. Money placed into an RRSP lowers the amount of income the government uses to calculate taxes owed, which can result in a smaller tax bill. Investments held in the plan can grow over time without being taxed each year. Taxes are only paid when money is taken out, often during retirement. RRSPs have yearly limits based on income, and unused space can be carried forward. They can also be used to help buy a first home or fund education.
