What's the difference between "Structured RRSP" and "Registered Pension Plan"?

[ahatt]

The company that I work for, offer's company matched Structured RRSP and Registered Pension Plans.

What's the difference between the two?
Which one would be better to opt into?

[freefreefree]

not sure, never heard of Structured RRSP

[ashedfc]

Structured RRSP is just an RRSP setup by the employer, where there are contributions from employer &/or employee;
The difference is RPP the money gets locked-in till age 65; whereas RRSP the money is not locked-in & can be withdrawn before age 65.

[ahatt]

So the only difference is one can be cashed out whenever, and the other can't be cashed out til 65? Does a RPP typically have a higher return than an RRSP?

Thanks for your help

Structured RRSP is just an RRSP setup by the employer, where there are contributions from employer &/or employee;
The difference is RPP the money gets locked-in till age 65; whereas RRSP the money is not locked-in & can be withdrawn before age 65.

[Carlotta]

An RPP is locked in until age 55 except in the case of financial hardship or for very small accounts. In either of those cases you can apply to have them unlocked. If you change companies, you can take the vested portion of the RPP with you.... it is transferred into a LIRA (Locked in Retirement Account) which remains locked in until age 55 at the earliest. Except in the cases mentioned above, you cannot just "cash out" a LIRA. It is meant to be paid out as retirement income.
An RRSP is also meant to be used as retirement income, but is not locked and CAN be cashed out all at once. However, you would have a hefty tax bill if you cashed it out. And cashing it out would really defeat the purpose.
You do not HAVE to convert your RRSP into a RRIF until age 71, at which time you must start taking a minimum amount each year, but there is no maximum. With a LIRA, you have a minimum AND a maximum.

[dagney]

Plus on an rrsp you can take out up to $20,000 (tax free) to buy a house but you have to pay it back over a set number of years.

[ashedfc]

Plus on an rrsp you can take out up to $20,000 (tax free) to buy a house but you have to pay it back over a set number of years.

Yes, that's true. RPP does not have that option.
The maximum amount under RRSP Home buyers withdrawal is 25000$ which has to be repaid in equal installments in 15 years

[ahatt]

Thanks everyone for your help! I decided to go with the RPP, it seemed to be the best option for me

[brunt]

Yes, that's true. RPP does not have that option.
The maximum amount under RRSP Home buyers withdrawal is 25000$ which has to be repaid in equal installments in 15 years

Just to elaborate here, each spouse can take out this amount, so if both spouses have the funds, they can take out a total of $50,000.