RRSP vs TFSA Decision Tool

Answer a few quick questions to see which account may be a better fit for your next dollar of long-term savings.

Rule-of-thumb only — not personalized advice

1. Your situation

Age (optional, used for context)

Approx. annual income before tax

Helps gauge your current tax bracket.

When might you need this money?

Shorter horizons usually favour TFSA flexibility.

Current marginal tax rate

Combined federal + provincial.

Expected tax rate in retirement

2. Cash flow & flexibility

Do you expect to need this money as an emergency fund?

Yes Possibly No, this is long-term

TFSA usually works better for money you might need to access.

Do you currently have high-interest debt (e.g., credit cards)?

Yes No / only low-interest

How stable is your income from year to year?

Quite stable Variable / fluctuates

3. Existing plans & room

Do you have a significant employer pension (e.g., defined benefit)?

Yes No / not significant

Approx. RRSP room available

Approx. TFSA room available

Please complete at least the tax rate, time horizon, emergency fund, and pension questions for a more useful result.

Your result

Suggested focus

Answer the questions and click “Calculate” to see a suggestion.

This tool uses simple rules of thumb based on tax rate differences, time horizon, and how much flexibility you may need.

This is a general educational tool and doesn’t replace personalized advice. Tax rules change and your situation may be more nuanced — especially if you’re a business owner, have a corporation, or multiple income sources.

Important: This tool does not capture every tax rule, government benefit interaction, or nuance (e.g., OAS clawback, GIS, corporate investment strategies). Consider this a starting point for a conversation, not a final answer. For tailored planning, speak with a qualified advisor.