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sometimes emergency expenses pop up or you have debt you want to pay down you might look at the money in your registered retirement savings plan or rrsp as a way to take care of it but there are lots of reasons why you shouldnt taking money out of your rrsp now means youll have less money when you retire youll miss out on the compound interest thats the snowball effect of earning interest on your initial investment and then interest on your interest it really adds up taking out ten thousand dollars at age 37 could mean fifty one thousand dollars less for your retirement and then theres taxes when you take money out of your rrsp your financial institution withholds some of your money to pay the income tax on the withdrawal in some provinces this can be up to 30 percent then when you file your income taxes youll also have to claim the money you took out as income that year depending on your tax bracket you may have to pay more in taxes than what was originally withheld so when you