RRSP contributions have a February deadline for your 2025 tax year. You walk into your bank. They want your money. They're not asking whether you should actually be making a contribution. They don't know you well enough. That's not the advice they're giving. You're pressured. RRSP season feels urgent. But what if contributing now costs you more tax later? You get a deduction today against your 2025 income. Then at 65, 70, 75, you withdraw it and pay tax. Will your tax rate be lower then or higher?

Bruinsma's rule of thumb: if you earn more than $50,000 taxable income, RRSP contributions probably make sense. Below that? Your tax bracket now might be lower than your retirement tax bracket when you combine Canada Pension Plan, Old Age Security, workplace pension, and savings withdrawals. You'd be getting a small tax break now to pay higher tax later. That's backwards. The TFSA has no deadline, no RRSP season marketing push, and works for anyone regardless of income. Money goes in after-tax. Growth is never taxed. Ever.

The pressure to contribute by February end assumes everyone benefits equally. Life never unfolds the way financial plans predict. Make the best decision with information you have now, not the marketing timeline the banks created.

Topics: RRSP contributions, tax planning, TFSA benefits, retirement income, financial deadlines

GUEST: Anita Bruinsma | http://clarityonyourmoney.com

Originally aired on 2026-02-02

RRSP contributions have a February deadline for your 2025 tax year. You walk into your bank. They want your money. They're not asking whether you should actually be making a contribution. They don't know you well enough. That's not the advice they're giving. You're pressured. RRSP season feels urgent. But what if contributing now costs you more tax later? You get a deduction today against your 2025 income. Then at 65, 70, 75, you withdraw it and pay tax. Will your tax rate be lower then or higher?
Bruinsma's rule of thumb: if you earn more than $50,000 taxable income, RRSP contributions probably make sense. Below that? Your tax bracket now might be lower than your retirement tax bracket when you combine Canada Pension Plan, Old Age Security, workplace pension, and savings withdrawals. You'd be getting a small tax break now to pay higher tax later. That's backwards. The TFSA has no deadline, no RRSP season marketing push, and works for anyone regardless of income. Money goes in after-tax. Growth is never taxed. Ever.
The pressure to contribute by February end assumes everyone benefits equally. Life never unfolds the way financial plans predict. Make the best decision with information you have now, not the marketing timeline the banks created.
Topics: RRSP contributions, tax planning, TFSA benefits, retirement income, financial deadlines
GUEST: Anita Bruinsma |<a href="http://clarityonyourmoney.com"> http://clarityonyourmoney.com</a>
Originally aired on&nbsp;2026-02-02

Shane Hewitt & The Nightshift is your late-night companion for real talk, bold ideas, and unfiltered conversations that matter. Hosted by Canadian radio veteran Shane Hewitt, each episode dives into the headlines, human stories, and hidden truths shaping our world—always with curiosity, compassion, and a sharp edge.

From politics and pop culture to mental health, technology, and everyday life, this podcast is where night owls, deep thinkers, and curious minds come to connect. Featuring expert guests, passionate callers, and Shane’s signature style—thoughtful, fearless, and refreshingly real.

If you crave meaningful dialogue, smart perspectives, and late-night radio energy in podcast form, subscribe now and join The Nightshift.

Shane Hewitt &amp; The Nightshift is your late-night companion for real talk, bold ideas, and unfiltered conversations that matter. Hosted by Canadian radio veteran Shane Hewitt, each episode dives into the headlines, human stories, and hidden truths shaping our world&mdash;always with curiosity, compassion, and a sharp edge.
From politics and pop culture to mental health, technology, and everyday life, this podcast is where night owls, deep thinkers, and curious minds come to connect. Featuring expert guests, passionate callers, and Shane&rsquo;s signature style&mdash;thoughtful, fearless, and refreshingly real.
If you crave meaningful dialogue, smart perspectives, and late-night radio energy in podcast form, subscribe now and join The Nightshift.

Shane Hewitt and The Nightshift

Shane Hewitt is known for his engaging and relatable on-air personality, which captivates listeners. His ability to blend insightful commentary with humour and empathy creates a genuine connection with listeners.  Shane Hewitt and the Night Shift provides relatable content, informative discussions and expert insights – along with a balance of anecdotes and entertainment.

Shane Hewitt is known for his engaging and relatable on-air personality, which captivates listeners. His ability to blend insightful commentary with humour and empathy creates a genuine connection with listeners.  Shane Hewitt and the Night Shift provides relatable content, informative discussions and expert insights – along with a balance of anecdotes and entertainment.