Unlike a TFSA, an RRSP doesn’t offer tax-free withdrawals at any time and there are quite a few RRSP withdrawal rules everyone should know about.
An early withdrawal from an RRSP is taxed like regular income, at the same rate as your tax bracket. This is known as RRSP Withholding Tax. The idea being you should wait to withdraw your RRSP until retirement, when you’re in a significantly lower tax bracket and can maximize your tax savings.
An RRSP legally matures on December 31st in the year you turn 71 years old, and your funds can be accessed in one (or a combination of) the following ways:
Withdraw your funds in cash
Convert your RRSP to a Registered Regiment Income Fund (RRIF) and make minimum withdrawals each year
Use funds to purchase an annuity (offers guaranteed income for a set period of time)
All that said, there are government initiatives that allow you to withdraw certain amounts from your RRSP early before retirement with no penalties - like if you plan to use your funds to buy your first home (Home Buyers' Plan) or advance your education (Lifelong Learning Plan).