Listen to a Business English Dialogue About Registered retirement savings plan
Penelope: Hi Eugene, have you heard about Registered Retirement Savings Plans (RRSPs)?
Eugene: Hi Penelope, yes, RRSPs are a type of account in Canada where individuals can save for retirement while enjoying tax benefits.
Penelope: That’s right. Contributions made to RRSPs are tax-deductible, and any income earned within the plan is tax-deferred until withdrawal.
Eugene: It’s a popular way for Canadians to save for retirement while reducing their taxable income. Plus, there’s flexibility in choosing investments within the RRSP.
Penelope: Absolutely. And the unused contribution room can be carried forward to future years, allowing individuals to catch up on their retirement savings if they haven’t contributed the maximum amount in previous years.
Eugene: It’s definitely an important aspect of financial planning for many Canadians, especially considering the tax advantages and long-term growth potential.