Quote:
Originally Posted by Slava
I wouldn't go quote that far. Quite a few people save for retirement that way specifically for the tax savings, and a lot of jobs with good pensions are using that RRSP room for that purpose. It's easy to say that they're useless, but there are potentially unintended consequences if the program was just scrapped or ignored entirely.
I would also note that quite a few people use the two accounts very differently. They might use the TFSA for short term savings and the RRSP for the longer term.
|
The only tax savings you get with a RRSP is not paying taxes on dividends and cap gains.
Once you withdraw money you pay tax on it. Since everybody here agrees that everybody will be paying more tax in the future, you will end up paying more then than now.