RRSP vs TFSA
Which account gives you more after-tax money based on your tax rates now and in retirement?
Your Situation
Same amount contributed to each account for a fair comparison.
Tax Rates
Your combined federal + provincial rate today.
Your expected rate when you withdraw in retirement. Often lower due to reduced income.
Head-to-Head Result
RRSP wins by $58,156
Your expected retirement rate (30%) is lower than your current rate (40%), so your RRSP deductions are worth more than the tax owed at withdrawal, especially when refunds are reinvested.
TFSA
Tax-Free Balance
$581,564
RRSP + Refunds
Total After-Tax Value
$639,720
account + reinvested refunds
Assumes annual RRSP refunds are reinvested and grow at the same rate. This is the standard academic comparison and the fairest way to evaluate both accounts on equal footing.
After-Tax Total Value Over Time
- TFSA
- RRSP + Refunds
Compare real rates from Canadian credit unions
Many credit unions offer better rates than what you're calculating with. See the current leaders.