A Registered Retirement Savings Plan (RRSP) is a federal government-approved plan in which the depositor can save for retirement. Contributions are made within pre-defined limits and the income earned on RRSP deposits is tax sheltered until the funds are withdrawn.

The purchase of an RRSP investment allows the individual to claim a tax deduction for the amount of the annual contribution, thus reducing the amount of one's overall taxable income.

How much should you be putting into a RRSP each year? Click here to find out