RRSP vs. TFSA: What’s Right for Your Team?

Written By Madison McKimm

Offering group wealth plans is one of the smartest moves an employer can make. Not only does it help employees save for the future, but it also shows you’re invested in their financial well-being. The question is: should you offer an RRSP or a TFSA — or both?

  • RRSP (Registered Retirement Savings Plan): Contributions reduce taxable income, and savings grow tax-deferred until withdrawal.

  • TFSA (Tax-Free Savings Account): Contributions don’t reduce taxable income, but withdrawals are tax-free.

For employees, both options have value. RRSPs are great for long-term retirement planning, while TFSAs offer flexibility for short- and medium-term goals. Employers who provide access to both give their teams the freedom to plan their future on their terms.

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Madison McKimm
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The Future of Employee Benefits in Canada: 2025 and Beyond