If you’re planning to retire, there are a few great registered investment plan options that you can choose to invest your money in.

If available, take advantage of an employee savings program where your employer matches or supplements what you’re contributing.

The Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA) are registered investment plans that provide ways to save for the long-term.

RRSPs

With an RRSP, contributions you make to your plan reduce your taxable income while your investments grow on a tax-deferred basis. An RRSP allows you to make tax-deductible contributions each year, either in a lump sum or through regular Pre-Authorized Contributions (PAC).

The maximum you can contribute each year is set by the Canadian government and depends on your income. The upside to this is that when you’re retired, you could potentially be in a lower tax bracket and pay fewer taxes.

TFSAs

A TFSA is an all-purpose savings account that offers the flexibility to save for many goals in one account. You can use it to save for your short and long-terms goals, such as retirement, a car, vacation, wedding, buying a home, or going to school.

Your savings grow over time tax-free, and you can withdraw your money whenever you need it.