Are RRSP’s worth it?
The reason why RRSPs are so popular with high-income individuals is because of their tax advantages. RRSPs allow you to defer tax; you don’t avoid it entirely; you just defer it until retirement. The tax can be deferred until retirement when they’re in a lower tax bracket. There are two ways to withdraw RRSP contributions without paying taxes.
Home Buyers Plan (HBP) is available to first-time homebuyers. Those returning to school can use the Life Long Learning Program (LLP). The repayment period is 15 years, and withdrawals are limited. By doing this, individuals can contribute to their RRSP, receive a tax refund, and withdraw that money using the HBP and LLP without paying taxes on it.