If you’re like most Canadians, your RRSP (Registered Retirement Savings Plan) is one of those things you know you should contribute to but maybe haven’t gotten around to yet.

Well, consider this your friendly reminder: The deadline to contribute for the 2024 tax year is March 1, 2025.

That means you still have time to reduce your taxable income and build your retirement savings.

But why is it so important to contribute?

Let’s break it down.

1. Reduce Your Tax Bill (or Boost Your Refund)

Every dollar you contribute to your RRSP lowers your taxable income for the year.

That could mean paying less in taxes or even getting a bigger refund come tax season.

For example, if you earn $75,000 and contribute $10,000 to your RRSP, your taxable income drops to $65,000. Depending on your tax bracket, this could mean thousands in tax savings.

Who doesn’t want that?

2. Let Compound Growth Work Its Magic

Your RRSP isn’t just a tax tool—it’s a long-term investment powerhouse.

The money inside your RRSP grows tax-free until you withdraw it in retirement, meaning you don’t pay taxes on investment gains, dividends, or interest while your money is growing.

Think of it like planting a tree. The sooner you plant it, the bigger it grows over time. If you wait too long, you miss out on years of compounding growth.

3. Take Advantage of Employer Matching (If Available)

Does your employer offer an RRSP matching program? If so, you’d be leaving free money on the table by not contributing. Many companies will match a percentage of your contributions, effectively doubling your savings without any extra effort on your part.

4. Borrow from Your RRSP for a Home or Education

Need to buy your first home or go back to school? The RRSP has programs that let you borrow from your savings without immediate tax penalties:

• The Home Buyers’ Plan (HBP) lets you withdraw up to $35,000 for a down payment on your first home.
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• The Lifelong Learning Plan (LLP) lets you withdraw up to $10,000 per year (to a max of $20,000) for education.

5. You Can Catch Up on Unused Contribution Room

If you haven’t maxed out your RRSP in previous years, don’t worry! Unused contribution room carries forward.

Check your CRA My Account to see how much room you have available—it might be more than you think.

The Bottom Line

Contributing to your RRSP before the March 1, 2025 deadline is a smart move. It saves you money on taxes, grows your wealth for the future, and provides financial flexibility when you need it.

So, if you’ve been procrastinating, now’s the time to take action. Even a small contribution can make a big difference over time.

Your future self will thank you!