Before you rush to make that last-minute RRSP contribution in time for the March 1 deadline, you might want to glance at this recent report by the CD Howe Institute.

According to the report, most Canadians may benefit more from investing in a Tax-Free Savings Account (TFSA) rather than a Registered Retirement Savings Plan (RRSP).

The TFSA was introduced in 2008 and allows tax-free accumulation of investment income. If you’re over 18, you can invest up to $5,000 per year through the plan and not pay a cent on your earnings. Unused room can be transferred over to the next year and, unlike an RRSP, if you need to access the cash, you can do so without penalty.

The reason the CD Howe Institute believes this is a better choice for most Canadians is because of this tax-free accessibility. When you draw on your RRSP after retirement, you’re typically charged a tax rate that is higher than the rate you would pay on regular income during working life.