In 1957 The federal government introduced RRSPs, to encourage Canadians to save for retirement. Before RRSPs, only individuals who belonged to employer-sponsored registered pension plans could deduct pension contributions from their taxable income.

A Registered Retirement Savings Plan or RRSP is an account that provides tax benefits for saving for retirement in Canada. RRSP refers to a provision in the Income Tax Act that allows a person to shelter financial property from income taxes.

The program is regulated by the Federal Government of Canada and offers tax advantages to help Canadian residents accumulate financial wealth through a wide range of invesments.

Opening an RRSP is easy. If you are earning an income, you can begin saving for as little as $25/mo.

It is wise for young people to begin their savings as early as possible.