March 1 is the deadline to make your 2016 Registered Retirement Savings Plans (RRSP) contribution, and while many people wait until the last minute, the most important thing is to get it done.
People understand there are tax-deferral advantages to RRSPs but they may not be aware of all of its benefits.
Tax-deferred savings are a clear benefit. Funds in an RRSP — including deposits, interest or dividends — are sheltered from tax until they are withdrawn. If you wait until retirement when your income is significantly less or even zero, proceeds from the account will be taxed at a significantly lower income rate.