There has been an ongoing debate in Canada’s financial circles.

The question? Is it better to save for your retirement using a non-registered (or open) investment account, or should you still use the tried and true registered retirement savings plan (RRSP)?

The answer may not surprise you: it depends.

In this bulletin, we’ll discuss the factors to consider before making a decision about whether or not to abandon your RRSP.

Here in Canada, the government allows us to save for our retirement through tax-deferred RRSPs.

The RRSP has become a very popular tax savings vehicle since you receive a tax deduction for contributions (within limits) made to your RRSP each year, while earnings within the plan accumulate on a tax-deferred basis. However, but what about open accounts? Here are some pros and cons as well as some points to consider for both types of retirement savings.