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Do I need an RRSP?
The 2020 maximum annual Canada Pension Plan payment a Canadian could receive as a new recipient starting their pension at age 65 is $1,175.83 per month. Canada's senior population (65+) is expected to increase dramatically in the future. You shouldn't rely on government pension plans alone for your retirement income. An RRSP can help you maintain your standard of living when you retire.
In addition to this, your taxable income will be reduced each year by the amount of the eligible contribution. So, the more you contribute, the less income tax you'll pay in the year that you make the contribution.
Please note that the answers to the questions are for information purposes only for the products discussed. Individual circumstances may vary. In case of discrepancy, the documentation prevails.