Saving for retirement, a Registered Retirement Savings Plan (RRSP) is a popular choice for most Canadians. A Tax-Free Savings Account (TFSA) can also be used to save for retirement, but it gives you the flexibility to save for short-term goals, too.

Here are some points when you choose the RRSP and TFSA:

• Your savings in an RRSP grow tax-deferred while your savings in a TFSA grow tax-free.

• RRSP contributions are tax-deductible, helping you to pay less tax in your earning years. TFSA contributions are not tax-deductible.

• People have to earn an income to put money in an RRSP. With a TFSA, people can contribute even if they aren’t working and earning.

• People can’t keep saving in their RRSP after age 71, but a TFSA can let people make contributions for life.

• Withdrawals from a TFSA are never taxed. Withdrawals from an RRSP are taxed the year you withdraw the money.