Every individual who works, files a Canadian income tax return, and looks forward to secure retirement should consider having an RRSP.

Here's why:

• People who earn income through their employment or self-employment, can reduce their annual tax bill while saving for their future through an RRSP.
• For people who have a company pension plan, RRSPs add extra comfort that their retirement needs are met; for those that don't have company pension plans, RRSPs may be the foundation for funding their retirement.
• Married couples where one spouse earns more income than the other can reduce their combined tax burden through a spousal RRSP. At retirement, an income-splitting strategy can be applied to reduce overall tax when the funds are withdrawn.
• If you are planning on purchasing your first home or are interested in continuing your education, you can contribute to your RRSP, then use these funds as a source of financing.
• If you anticipate fluctuations in your income because of maternity leave, career change or employment interruptions, the funds in an RRSP are always available to you.

Next:  Types of RRSPs