TFSA vs RRSP Contribution Analyzer
Compare the benefits of Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) contributions based on your financial situation.
Your Financial Information
Enter your details to compare TFSA and RRSP contributions.
30 years
65 years
$6,000
$75,000
$50,000
6%
2%
TFSA vs RRSP Comparison Results
Based on your inputs, here's how your TFSA and RRSP contributions compare.
Tax Rates
Current Marginal Tax Rate:29.65%
Expected Retirement Tax Rate:24.15%
Tax Rate Difference:5.50%
Investment Period
Years Until Retirement:35 years
Total Contributions:$210,000
TFSA Projection
Annual Contribution:$6,000
Future Value:$708,725
Tax on Withdrawal:$0
After-Tax Value:$708,725
RRSP Projection
Annual Contribution:$8,529
Future Value:$1,007,427
Tax on Withdrawal:$243,294
After-Tax Value:$764,134
Recommendation
Based on your inputs, an RRSP contribution may be more beneficial.
Your RRSP would provide approximately $55,409 more in after-tax retirement savings compared to a TFSA.
This is primarily because your current tax rate (29.65%) is higher than your expected retirement tax rate (24.15%).
Note: This is a simplified analysis. Consider consulting with a financial advisor for personalized advice that takes into account your complete financial situation.