The RRSP is the main retirement savings vehicle in Canada. Contributions are tax-deductible (you get that money back at your marginal rate when you file), growth is tax-sheltered, and you pay tax only when you withdraw, ideally in retirement when your marginal rate is lower.
Contribution room is 18% of the prior year's earned income, up to an annual cap ($32,490 for 2025), minus any pension adjustment. Unused room carries forward indefinitely. Your Notice of Assessment shows your available RRSP room. WealthWatch imports this automatically if you enter your CRA data.
RRSPs also enable the Home Buyers' Plan (HBP). You can withdraw up to $60,000 toward a first home and pay it back over 15 years, interest-free. And the Lifelong Learning Plan (LLP) lets you withdraw for education.
Key tax tip: US dividends in an RRSP are not subject to the 15% US withholding tax (because of the Canada-US tax treaty), but the same dividends ARE withheld in a TFSA. That's why Canadian FIRE enthusiasts typically hold US-listed ETFs (VTI, VOO) in their RRSP and Canadian equities in their TFSA.