Don’t fall for these RRSP myths.

“There’s no point investing in an RRSP — you pay all the savings back in taxes when you retire anyway.” Remember you receive a tax deduction when you contribute, and if your tax rate is lower in the year you withdraw, then you pay less tax on it. Plus, regardless of the tax rate, you will enjoy tax-free long-term compounding on your investments in an RRSP.

“It’s better to invest in a TFSA than in an RRSP.” This isn’t true if you expect to have a lower tax rate in retirement.

“It’s better to pay off debt.” This is true for high-interest debt, but the numbers don’t support it for other debts such as a low-interest mortgage.

“I don’t have enough money to save in an RRSP.” Modest, regular contributions can really add up.

“If I save too much in an RRSP or RRIF, there will be a large tax bill when I die.” There are strategies to minimize income taxes on your RRSP/RRIF, and also exceptions.

Read more: The five biggest RRSP myths that Canadians can’t stop repeating