Saving for retirement can be tough. Depending on your income and financial obligations, it's not hard to feel the pinch in your pocketbook right before the RRSP deadline.

Wouldn't it be nice if you could grow your RRSP without contributing extra cash? Well, it is possible! With a little bit of planning and these three smart strategies you can bulk up your RRSP savings and grow your retirement without any additional dollars.

If you're new to RRSPs, then check out The 5 Minute Guide To Your RRSP.

If you're contributing to your RRSP at the end of the tax year, then you're missing out on a full year of compound growth. Over time this tax-free growth can add up to thousands of extra dollars.

For example, let's assume you're putting $5,000 into your RRSP annually. At a conservative rate of 3%, here's how the money adds up after 25 years:

Total RRSP by contributing at start of tax year: $187,765.21
Total RRSP by contributing at end of tax year: $182,296.32
Difference: $5,468.89

By switching your contributions to January 1st, the start of the tax year, you're giving your RRSP additional time to grow for free by harnessing the power of compound interest.

I used to rejoice every year when my RRSP contribution earned me a nice little tax refund. In hindsight, getting an annual tax refund is akin to giving the government an interest-free loan. Who wants to do that?

If you make regular RRSP contributions you can request to have fewer tax dollars deducted from your paycheque by filing a Request to Reduce Tax Deductions at Source (T1213). The form is easy to fill out -- the instructions are explained in Stop giving the government an interest free loan!

Besides, paying less tax throughout the year makes it easier to boost your RRSP contributions, fund your Tax-Free Savings Account, or even pay down your mortgage.

If you're expecting a big raise next year, consider deferring your RRSP deduction for next year. By contributing to your RRSP today and saving your tax deduction for when your income is greater, you could save big on taxes tomorrow by lowering your tax bracket.

For example, a $2,500 RRSP contribution made at a marginal tax rate of 23% earns you a $575 tax refund. But by deferring this deduction to next year, when you know you're income is at a higher marginal tax rate of 37%, you could earn a $925 refund.

By deferring your deduction one year at a higher marginal tax rate, you end up with an extra $350 for the same $2,500 RRSP contribution -- this is essentially a guaranteed 14% rate of return. Now add these newly found additional dollars to your RRSP and continue to watch it grow!

Your Turn: Do you use any of these strategies to grow your RRSP without contributing extra money?

posted at 4:15 AM in RRSP	share