Tax Free Savings Accounts and Registered Retirement Savings Plans can be complicated, and sometimes confusing when trying to decide which of the two might best suit your tax needs. RRSP contributions and their tax benefits depend on your earnings, and how much you invested into the RRSP, but generally speaking is more beneficial for people with higher incomes. A TFSA is a better way to fund medium to long-term expenses, especially since TFSA withdraws are not taxable whereas RRSP withdraws are taxable.

“When saving and planning for retirement, it pays to take a long-term approach with today’s decisions – and to personalize them.”

Read more: TFSA vs RRSP: How to decide between the two accounts