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RRSP Eligibility Rules and Requirements

Learn who qualifies for an RRSP, when you can start contributing, and why early planning matters

The Registered Retirement Savings Plan (RRSP) is one of Canada’s most effective retirement planning tools. But before you can benefit from tax-deductible contributions and tax-deferred growth, it’s essential to know whether you’re eligible to open an RRSP—and how eligibility rules impact your ability to save.

Many people assume RRSPs are only for working adults or high-income earners. In reality, the eligibility criteria are quite broad, making it possible to start saving for retirement earlier than you might think. Understanding who can open an RRSP and how contribution room is built is the first step toward making it a strategic part of your financial plan.

Basic RRSP Eligibility: Who Can Open an Account?

The RRSP is available to most Canadians, but there are a few key requirements:

Requirement Description Key Takeaway
Canadian residency You must be a resident of Canada for tax purposes. Residency status determines eligibility.
Earned income You must have earned income reported on your tax return. Without earned income, you cannot generate RRSP room.
Age limit You must be under 71 at the end of the year to contribute. Contributions stop after December 31 of the year you turn 71.
Minimum age No minimum age requirement. Even teenagers with part-time jobs can start generating RRSP room.

Note: Contribution room is tied to earned income, not age. Even if you don’t make contributions right away, unused room carries forward indefinitely.

How Earned Income Creates RRSP Contribution Room

Your eligibility to contribute to an RRSP is tied directly to your earned income. The Canada Revenue Agency (CRA) calculates your available contribution room each year as 18% of your previous year’s earned income, up to an annual maximum set by the government.

Earned income includes:

  • Employment income

  • Self-employment income

  • Rental income

  • Certain types of disability benefits

  • Spousal support payments received

Investment income, capital gains, and pension income do not generate RRSP contribution room.

Unused contribution room carries forward indefinitely, allowing you to contribute more in future years when you have the financial means.

Special Considerations: RRSPs for Students, Young Workers, and Spouses

Even if you’re a student or early in your career, starting an RRSP strategy early can be beneficial. While you might not need the tax deduction immediately, you can carry forward unused deductions to future years when your income—and tax rate—is higher.

For families, spousal RRSPs provide an opportunity to equalize retirement savings and optimize tax efficiency in retirement. Contributions to a spousal RRSP are based on the contributor’s RRSP room but are invested in the spouse’s name for future income-splitting benefits.

At Optimize, we help you identify when it makes sense to prioritize RRSP contributions, even for younger earners or within a spousal strategy, ensuring every dollar of contribution room is used strategically.

When RRSP Eligibility Ends

While contribution room accumulates throughout your working years, there is a hard stop: you can no longer contribute to your own RRSP after December 31 of the year you turn 71. At that point, you’ll need to convert your RRSP into a Registered Retirement Income Fund (RRIF) or purchase an annuity.

However, if you have a younger spouse, you may still contribute to a spousal RRSP as long as they are under 71 and you have remaining contribution room.

How Optimize Helps You Navigate RRSP Eligibility and Contributions

At Optimize, we don’t just focus on whether you’re eligible for an RRSP—we focus on how it fits into your bigger financial picture. Our approach includes:

  • Determining the right timing for RRSP contributions, especially when balancing tax brackets and cash flow.

  • Identifying opportunities for younger earners and families to build contribution room early.

  • Integrating spousal RRSP strategies for future income splitting.

  • Helping you manage and track unused contribution room, so nothing gets overlooked.

  • Advising on contribution deadlines and RRSP conversions as you approach age 71.

With Optimize’s guidance, RRSP eligibility becomes more than a rule—it becomes an opportunity to strengthen your long-term retirement strategy.