On average, Canadians are living longer than ever. The life expectancy for a 65 year-old is age 84 for men and age 87 for women. These numbers point to longer retirements for many Canadians.

A longer retirement, however, presents an interesting planning challenge - saving enough to generate a sustainable income during your retirement years.

Registered Retirement Savings Plans (RRSPs) are among the most popular investment plans in Canada. With the dual benefits of tax deductions and tax-deferred growth, it’s easy to see why Canadians choose RRSPs as their primary retirement savings vehicle.

Introduced in 2009, Tax-Free Savings Accounts (TFSAs) are a newer plan type that offer tax-free growth and significant flexibility. As TFSAs mature and contribution room grows, people are beginning to see the long-term benefits of incorporating TFSAs into their investment plan as soon as possible.

• There are certain guidelines you can follow to decide whether to contribute to an RRSP or TFSA. Please keep in mind that some or none may apply to you. The best approach is to consult with your financial advisor to decide on the most appropriate option. Your financial advisor can also help you estimate how much money you’ll need in retirement, and what savings and investment strategies will help you generate the necessary income.

Whether you invest in an RRSP or a TFSA usually depends on your current and future financial situation, and your long-term goals. Consult with your financial advisor to determine the option for you.