To get more retirement benefits from your RRSP, you can reinvest all of your refund back into your RRSP (if you have contribution room available). For example, if your marginal tax rate is 50 per cent and you invest $1,000, you would generate a $500 refund. If you spend the refund, your true after-tax commitment to your retirement goal is only $500. But if you invest that tax refund, you increase your RRSP by 50 per cent. Your RRSP investment now becomes $1,500, which represents a significant increase to your overall financial plan.