Building a Registered Account Strategy: Step-by-Step Approach

A practical guide for creating a balanced approach using both RRSP and TFSA accounts, with examples for different life stages and income levels.

10 min read Intermediate February 2026

Retirement planning notebook with handwritten financial notes and calculator showing account strategy planning

Why Most People Get This Wrong

Here’s the thing â€” most Canadians don’t have a real strategy for their registered accounts. They open an RRSP because their employer matches contributions. They open a TFSA because someone mentioned it. But they’re not actually thinking about which account works best for their situation.

The truth is, your best approach depends on your age, income, timeline, and financial goals. We’re going to walk you through exactly how to build something that actually works for you.

Professional advisor reviewing financial documents with registered account comparison charts

Step 1: Understand Your Foundation

Before you decide where to put your money, you need to know what you’re working with. We’re talking about three things: your annual income, how much you can realistically save each month, and what you actually need the money for.

Let’s be specific. If you’re earning $55,000 a year, you’re looking at roughly $27,500 in RRSP contribution room. That’s room that accumulates year after year. A TFSA? You’ve got $7,000 per year to work with, regardless of income. The math is simple, but it matters for your planning.

Your timeline matters too. Are you saving for retirement in 30 years? For a house in 5 years? For a sabbatical in 2 years? Each goal needs different treatment because of tax rules and withdrawal penalties.

Detailed financial spreadsheet showing RRSP and TFSA contribution room calculations with pen marking key figures

Step 2: Figure Out Your Priority

Here’s where most people mess up. They think one account is automatically better. It’s not. Your priority determines everything.

Tax Deduction Priority

If you’re in a higher tax bracket (think $90,000+ income), an RRSP contribution can save you serious tax money. A $10,000 contribution might get you a $4,300 tax refund. That’s real money. You’re reducing your taxable income in the year you contribute, which means lower taxes owing.

Flexibility Priority

If you value being able to access your money without consequences, the TFSA is your answer. You withdraw $5,000 today, that room comes back next year. No tax hit. No penalties. You’re not locked in like you are with RRSP withdrawals.

Income tax brackets document with highlighter marking different salary ranges and corresponding tax rates

Step 3: Build Your Allocation Strategy

Now we’re getting into the actual plan. You’ve got limited money to save each month. How do you split it between RRSP and TFSA?

For someone earning $50,000â€“$75,000, a solid approach is the 60/40 split. Put 60% of your monthly savings into your RRSP, 40% into your TFSA. Why? The tax deduction from the RRSP is meaningful at this income level, but you’re not in the highest bracket, so you don’t need to maximize it.

For someone earning $100,000+, consider 70/30 or even 80/20 in favor of the RRSP. Your tax bracket makes that deduction worth more. But don’t completely ignore the TFSA â€” the tax-free growth compounds over decades.

If you’re under 35 and have 30+ years until retirement? A TFSA-first approach actually makes sense. You’re not in a high tax bracket yet. Let that tax-free growth work for you. Your $400/month contribution over 30 years becomes $230,000+ if you’re getting 5% average returns. That’s tax-free forever.

Pie chart showing 60-40 allocation strategy between RRSP and TFSA accounts for mid-income earners

Step 4: Adjust for Your Life Stage

Your strategy isn’t static. It should evolve as your life changes.

Ages 25â€“35: Building Phase

You’re probably earning less than you will later. Build your TFSA first â€” get that tax-free compounding started. Start contributing to RRSP if your employer matches. You’ve got time on your side.

Ages 35â€“50: Acceleration Phase

Your income’s growing. You’ve got a TFSA with a solid foundation. Now you’re shifting toward maximizing RRSP contributions because your tax bracket is higher and you’ve got room to catch up on previous years.

Ages 50â€“65: Final Push

This is when catch-up contributions matter. You can contribute extra to your RRSP (catch-up rules allow it). You’re squeezing out final years of tax deductions. Your TFSA keeps growing tax-free.

Age 65+: Withdrawal Phase

RRSP becomes an RRIF and you’re taking required withdrawals. TFSA? You can keep contributing and withdrawing whenever you want. It’s your most flexible account now.

Timeline showing registered account strategy evolution across different age groups and life stages

Your Action Plan This Month

Don’t overthink this. Here’s what you actually do:

Check your CRA account online. Look at your RRSP contribution room. It’s listed on your Notice of Assessment.

Decide how much you can save monthly. Be realistic â€” $200/month you actually contribute beats $500/month you skip.

Set up automatic contributions to both accounts. Use the allocation strategy that matches your income level from Step 3.

Review annually. Your income changes, your goals change â€” your strategy should too. But don’t flip it around constantly.

Hands working on laptop showing online banking dashboard for setting up automatic RRSP and TFSA contributions

Important Information

This guide is educational and designed to help you understand how registered accounts work. It’s not personalized financial advice. Your actual strategy should account for your specific income, tax situation, debt levels, emergency fund status, and personal goals. Consider speaking with a financial advisor or tax professional before making major contribution decisions, especially if your situation is complex. RRSP and TFSA rules can change, and individual circumstances vary significantly. What works for one person might not be ideal for another.