RRSP Reality Check
When you contribute to an RRSP, the government is buying a stake in your account at your marginal tax rate. The refund isn't free money — it's their co-investment. At withdrawal, they collect their share.
Compare all three account types side-by-side: RRSP (with government partnership), TFSA, and unregistered. When your contribution rate equals your withdrawal rate, RRSP and TFSA give identical results. The RRSP advantage only kicks in when you withdraw at a lower rate than you contributed.
What you actually set aside from your paycheque each year.
Used to auto-fill tax rates below. Override rates directly if needed.
Auto-filled from province + income (30.0%).
Auto-filled from expected retirement income (25.0%).
You keep: $282K from RRSP
Your $2,571 refund isn't free money — it's the government buying a 30.0% stake in your RRSP.
At withdrawal, the government collects their share: $94.0K (25.0% of $376K).
You contributed at 30.0% and will withdraw at 25.0%. The 5.0% spread is your RRSP advantage: $18.8K more than TFSA.
$282K
RRSP (your share)
$263K
TFSA
$240K
Unregistered
Government Partnership
When your marginal rate at contribution equals your withdrawal rate, RRSP = TFSA. The refund isn't free money — it's the government's co-investment.
RRSP
Gross: $376K · $8,571/yr gross contribution
TFSA
$6,000/yr · fully yours, $0 tax at withdrawal
Unregistered
~1.5% distribution yield taxed annually at contribution rate, plus 50.0% inclusion × 25.0% on gains at sale
Three-way comparison over time
Comparison of RRSP after-tax, TFSA, and unregistered after-tax balances over time. RRSP (your share) ends at $282K (Yr 20); TFSA ends at $263K (Yr 20); Unregistered (after tax) ends at $240K (Yr 20)
Year-by-year breakdown
| Year | RRSP gross | Your share | Gov share | TFSA | Unregistered |
|---|---|---|---|---|---|
| 1 | $9,171 | $6,879 | $2,293 | $6,420 | $6,352 |
| 2 | $19.0K | $14.2K | $4,746 | $13.3K | $13.1K |
| 3 | $29.5K | $22.1K | $7,371 | $20.6K | $20.2K |
| 4 | $40.7K | $30.5K | $10.2K | $28.5K | $27.8K |
| 5 | $52.7K | $39.6K | $13.2K | $36.9K | $35.8K |
| 6 | $65.6K | $49.2K | $16.4K | $45.9K | $44.3K |
| 7 | $79.4K | $59.5K | $19.8K | $55.6K | $53.4K |
| 8 | $94.1K | $70.6K | $23.5K | $65.9K | $63.0K |
| 9 | $110K | $82.4K | $27.5K | $76.9K | $73.2K |
| 10 | $127K | $95.0K | $31.7K | $88.7K | $84.0K |
| 11 | $145K | $109K | $36.2K | $101K | $95.6K |
| 12 | $164K | $123K | $41.0K | $115K | $108K |
| 13 | $185K | $139K | $46.2K | $129K | $121K |
| 14 | $207K | $155K | $51.7K | $145K | $135K |
| 15 | $230K | $173K | $57.6K | $161K | $150K |
| 16 | $256K | $192K | $63.9K | $179K | $166K |
| 17 | $283K | $212K | $70.7K | $198K | $182K |
| 18 | $312K | $234K | $78.0K | $218K | $200K |
| 19 | $343K | $257K | $85.7K | $240K | $220K |
| 20 | $376K | $282K | $94.0K | $263K | $240K |
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These calculators use hypothetical assumptions for illustration only — not a guarantee of future performance or personalized financial advice. Consult a qualified professional before making investment or tax decisions.