A registered retirement savings plan (RRSP) is an account designed to help Canadians save for retirement.
The money you contribute to your RRSP is tax-deductible. That means that you can subtract the amount you contribute from your income and pay less in income taxes. If you made $70,000 this year and you contributed $10,000 to your RRSP, you will pay tax on only $60,000 of income. You will eventually have to pay income taxes when you withdraw your money from your RRSP, but the idea is that when you do so, you’ll be retired and your tax rate will be lower. Additionally, until you withdraw from your RRSP, the growth is tax-free.
You can also use a certain amount of funds from your RRSP to buy a home or even fund your education.
Keep in mind, the money you withdraw from your RRSP will be counted as income for that year, so you'll be required to pay taxes on it (unless withdrawing under the Home Buyer's Plan or Lifelong Learning Plan).