When someone is considering retirement, they generally do not think about everything that this would entail. Most people are not aware that only a small portion of their income for retirement will come from the government. This is usually only about 30 percent. Another 30 percent would come from the employee pension plan but most individuals do not have a pension plan. In this case, 70 percent of retirement income would have to come from the individual's investments. Which is why is in necessary to understand how a registered retirement savings plan (RRSP) actually works.