Pension Plan vs RRSP: Understanding Your Retirement Savings Options When planning for retirement, Canadians have a range of options available.
Two popular choices are pension plans and Registered Retirement Savings Plans (RRSPs). While both offer attractive benefits, they differ significantly in terms of structure, eligibility, and tax implications.
Understanding the Differences Between a Pension Plan and an RRSP A pension plan is essentially a promise by an employer to pay a certain amount of money to their employees in retirement.