You are Poorer Than You Think

RRSPs were subsidized usually about 40% by the tax refund and you will pay back roughly 40% upon withdrawal.

Your net 60% share grows completely tax free in this example.

But you really only own about 60% of "your" RRSP. $110k cash in a margin account is worth $100k as no tax due. $100k cash, bonds or stock in an RRSP is worth more like $60k after tax. But the tax is just the government taking back the 40% or so it subsidized your RRSP via the refund.

RRSP investors are poorer than most of them think.

RRSPs are an excellent tax saving tool but the 40% or so RRSP refund does not increase your net worth. Not when you consider it means the government is in substance a 40% or so partner in your RRSP.