The RRSP contribution deadline for the 2025 tax year is March 2nd, 2026, just a few weeks away. While retirement savings are best approached as a year-round habit, this time of year tends to bring them front of mind. Contributions made in the first 60 days of the calendar year can still be applied to the previous tax year, making the next few weeks a meaningful window for action.
How Much Can You Contribute?
Your available RRSP contribution room is personal to you, but it generally comes down to a few moving parts: any unused room carried forward from prior years, plus new room earned based on your previous year's income, up to an annual maximum of $32,490 for 2025 and $33,810 for 2026, less any contributions you've already made but haven't yet deducted. There's also a lifetime buffer of $2,000 in allowable overcontributions built into the rules.
The best place to confirm your exact room is through your most recent Notice of Assessment from the CRA, or by logging into CRA's My Account directly. These will reflect your current deduction limit and any contributions already on file.
Contributions and Deductions Aren't the Same Thing
One point worth understanding: making an RRSP contribution and claiming an RRSP deduction are two separate decisions. You can deposit money into your RRSP now, locking in your contribution room and letting your investments grow tax-sheltered, while choosing to claim the deduction in a later year when it may be worth more to you. This can be a smart move if you expect your income to rise, since the same deduction saves more tax at a higher bracket.
Should Retirees Still Contribute?
Many retirees assume RRSPs are no longer relevant to them, but that's not always the case. If you received a larger-than-usual income in 2025, from a property sale, an inheritance, or another one-time event, an RRSP contribution could help offset the tax impact. Similarly, if you still have unused contribution room and expect your income to be lower in future years, contributing now while deferring the deduction can be a useful strategy.
That said, if you're already drawing from a RRIF or pension, a TFSA is often the more practical choice. TFSA withdrawals are tax-free, won't affect your OAS or GIS benefits, and any amount you take out gets added back to your room the following year, there's no permanent loss of contribution space, unlike with an RRSP. If there's any chance you'll need to access the funds within the next few years, the TFSA is generally the more flexible option.
Other Planning Programs Worth Knowing
RRSPs aren't just for retirement saving. If you or your spouse are considering going back to school full-time, the Lifelong Learning Plan lets you borrow from your RRSP, up to $10,000 per year to a total of $20,000, and repay it gradually over time. For those purchasing a first home, the Home Buyers' Plan allows withdrawals of up to $60,000 from an RRSP toward a qualifying purchase, which can be combined with the First Home Savings Account for even greater saving potential.
And even with pension income splitting available after age 65, a Spousal RRSP can still play a useful role in retirement, particularly when there's a meaningful gap in income or assets between spouses.
A Few Reminders as Tax Season Gets Underway
Start gathering your slips, T4s, T5s, and RRIF statements should be arriving soon. If you're 65 or older, pension income splitting with your spouse is worth revisiting, as it can meaningfully reduce your combined tax bill. Medical expenses are another often-overlooked area: costs for prescriptions, dental work, and mobility aids may be deductible if they exceed the relevant threshold.
Good tax planning isn't something that happens once a year at deadline time, it works best when it's part of an ongoing conversation. If you haven't taken a fresh look at your strategy lately, now is a natural time to do so. And remember: the RRSP deadline is March 2nd. Everyone's situation is different, so if you'd like to talk through what makes sense for you, we're happy to help.
