How an RRSP Works
An RRSP is a registered account that allows you to save for retirement while deferring taxes. Contributions are made with pre-tax dollars, reducing your taxable income for the year. The investments within your RRSP grow taxdeferred, meaning you do not pay on investment earnings until you withdraw funds in retirement—when you may be in a lower tax bracket.
Key Features
Tax Deductible Contributions
Contributions reduce your taxable income, potentially resulting in a significant tax refund.
Tax-Deferred Growth
Investment earnings compound without being reduced by annual taxes.
Flexible Investment Options
Choose from a wide range of investments, including stocks, bonds, mutual funds, ETFs, and guaranteed products.
Spousal RRSPs
Contribute to a spouse's RRSP to split income in retirement and optimize tax efficiency.
2025 Contribution Rules
For the 2025 tax year, Canadians can contribute the lesser of:
* 18% of earned income from the previous year, or
* $32,490 (the maximum dollar limit)
Unused contribution room can be carried forward indefinitely, allowing you to catch up in future years.
Important Deadlines
* Contributions for the 2025 tax year can be made any time during 2025 or within the first 60 days of 2026.
* The RRSP contribution deadline for 2025 is March 2, 2026.
* Your RRSP matures on December 31 of the year you turn 71, at which point you must convert it to a RRIF or annuity.
Our RRSP Investment Approach
At Rennford, we manage RRSP portfolios with the same discipline and expertise applied to our institutional investments. Our approach combines:
● Real Asset Exposure: Investments in high-quality real estate infrastructure, and businesses that provide intrinsic value and stable returns.
● Diversification: Portfolios constructed to reduce risk while capturing growth opportunities across sectors and geographies.
● Long-Term Focus: Strategies designed to perform over decades, not quarters.
● Active Risk Management: Continuous monitoring and adjustment to protect against market downturns.
Whether you are just starting your RRSP or approaching retirement, our team works with you to develop a strategy aligned with your goals, timeline, and risk tolerance.
RRSP vs. Other Retirement Vehicles
| Features | RRSP | TFSA | Non-Registered |
|---|---|---|---|
| Tax Deductible Contributions | Yes | No | No |
| Tax-Free Growth | Deferred | Yes | No |
| Tax-Free Withdrawals | No | Yes | No |
| Contribution Limit (2025) | $32,490 or 18% of income | $7000 | No |
| Best For | Long-term retirement savings | Flexible, tax-free savings | Short-term goals, additional savings |