CRA MyAccount: check contribution room
Your RRSP and TFSA room both show in MyAccount. Year-end figures are authoritative; in-year balances can be delayed.
CRA: MyAccount →Stage · Planning your retirement in Canada
Accumulating retirement savings
The compounding years. Where most retirement wealth is made. TFSA and RRSP are the two engines. The 30-year gap between starting at 25 versus 35 is enormous.
What to do this week
- Max TFSA first if you are in a lower tax bracket than you expect in retirement, RRSP first if you are in a higher bracket. Most working Canadians should contribute to both.
- Check your RRSP contribution room in your CRA account. Unused room carries forward indefinitely.
- Automate contributions monthly. Set it and leave it; most underperformance comes from trying to time contributions around bonuses or market moves.
What to avoid
- Holding GICs inside a TFSA if your retirement is more than 10 years away. Equity expected returns dominate over long horizons.
- Using an RRSP for short-term savings. Early withdrawals are taxed as income and the room is not restored.
- Paying high MER mutual funds when ETF equivalents exist at a fraction of the cost. 1% per year compounds to a third of your portfolio over 30 years.
Calculators for this stage
Forms to file at this stage
Frequently asked
TFSA or RRSP first?
Use marginal tax rate today versus marginal tax rate at withdrawal. If today is higher, RRSP wins. If today is lower, TFSA wins. If equal, the math is a wash; TFSA offers more flexibility.
How much should I be saving?
A common target is 10 to 15% of gross income from age 25 through retirement for a typical Canadian retirement goal. Starting later means saving more.
Is a group RRSP from work worth it?
Almost always, especially if there is an employer match. An unmatched employer contribution is free money. The MER in group plans is often lower than retail.
Next stage
De-risking in the decade before retirement →