Maxed Out outlines the reasons why you should be contributing to your RRSPs.
1. It’s a way of lowering our taxable income. Who wouldn’t want to take advantage of a tax shelter?
2. Savings for retirement. No matter how good your pension plan is, it does not give you the security that you need.
3. The sooner you start contributing to RRSPs, the more comfortable you will be when you retire.
4. You can use your RRSPs as an interest free loan for education.
5. You can use your RRSPS as an interest free down payment towards your first home.
Tip: Each year you should go to your local HRDC branch (www.hrdc-drhc.gc.ca), give them your social insurance number and find out exactly how much money you would be receiving if you were to retire right now. This can be shocking for some people and provide good motivation to contribute to those RRSPs!