by Jonathan Chevreau @JonChevreau

Now that most Canadians and their advisers have gotten the message across about the rising power of tax-free savings accounts (TFSAs), some are beginning to question whether RRSPs are even relevant anymore.

In a nutshell, they are, at least for the vast majority of people still working and trying to put aside some money for retirement.

Remember first that the RRSP and TFSA are mirror images of each other. Mathematically, they behave in almost the same way in terms of the ongoing elimination of tax on investment income, but where the RRSP has an upfront tax deduction that lets contributors lower their taxable income, the TFSA does not.

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