RRSP vs TFSA
RRSP vs TFSA Calculator
Compare saving in an RRSP versus a TFSA based on your marginal tax rate today and in retirement.
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RRSP gets the full amount (with the refund); TFSA gets what's left after tax.
yrs
%
Federal + provincial combined.
%
%
RRSP, after tax on withdrawal
$22,532
TFSA, tax-free
$21,030
RRSP wins by
$1,502
The RRSP comes out ahead when your tax rate in retirement is lower than today; the TFSA when it's higher. The comparison only holds if you invest your RRSP tax refund, not spend it.
Simplified. RRSP withdrawals count as income and can reduce income-tested benefits such as OAS (clawback) and GIS, which TFSA withdrawals don't. Consider your employer RRSP match and the First Home Savings Account (FHSA) too. Not tax advice.
