If you have your own retirement funds, you're less likely to depend on dwindling government-funded programs. The government supports this self-sufficiency by offering you incentives to invest in RSP's. As a reward for investing your money in an RSP and saving for retirement, the government provides you with two major benefits. You pay less tax right away. Every dollar you put under your RSP umbrella reduces your taxable income by one dollar.
Most people contribute to RSPs for the immediate tax benefits.
You enjoy tax-free compound growth. Any profits you make on your non-registered investments are subject to income tax each year. But inside your RSP, all of your investment earnings are tax-deferred. You don't have to fork out any money for taxes. Probably the biggest reward, you get from contributing to an RSP is peace of mind.