Together we step into the future with confidence.


Jul 18, 2019

Many Canadians don’t know whether to choose RRSPs or TFSAs for their retirement savings. RRSPs have been around longer and are savings from pre-tax income. The individual receives a tax refund based on their marginal tax rate, but the savings accumulate tax-free until withdrawn.

TFSAs are savings from post-tax income. Thus, while there is no immediate tax refund, the savings grows tax-free and there is no tax liability upon withdrawal.

The good news for both vehicles is that unused contribution room can be carried forward.

But the longer you wait, the more years you lose to make that money work for you.

What should you choose, RRSP or TFSA? 

Ideally both because they allow money to grow tax-free and be drawn either on a tax-free (TFSA) or tax-deferred basis (RRSP). In retirement, the choice of drawing from a TFSA or RRSP adds significant flexibility.

Please contact our office and ask to speak with one of our advisors If you would like to review your investment options.