The answer to this question ultimately comes down to your income and your goals. A tax-free savings account (TFSA) allows you to save on taxes because any gains you make in a TFSA will not be subject to capital gains tax since you’ve already paid tax on that money prior to making a contribution.  With a registered retirement savings plan (RRSP), you can invest up to a certain amount of your gross income per year without having to pay income tax on those funds. As such, RRSPs let you defer your taxes while allowing you to save up for retirement. But you’ll have to pay tax on these funds when you withdraw them.