There is little doubt that both RRSPs ad TFSAs benefit wealthy people more than poor people. Nothing new there. If you have money to invest, you do. If you don't have any money to invest, you won't.

I have, for many years now, been advocating that another savings tool would be very beneficial in encouraging retirement savings.

Lets call it a locked in RRSP.

The idea would be that deposits into this account would generate tax savings at the same rate for all people regardless of income. 35% would work reasonably well.

Even people with lower incomes would be encouraged to use it.

The only extra rule required would be that you could not withdraw from it until 60 or minimum 10 years whichever is latest.

Comments???