It’s been 60 years since the RRSP was introduced as a retirement savings tool.

But that doesn’t mean Canadians have learned all the lessons of the past. Here’s a look at five common mistakes investors make with their RRSPs:

1. Dipping into the funds:

Carol Bezaire, the vice-president of tax, estate and strategic philanthropy at Mackenzie Investments, says the No. 1 blunder is dipping into an RRSP for expenses other than retirement income.

“People are making random withdrawals out of it for vacation or whatever,” she says. “And what they end up with in April is an unexpected tax bill.”

Financial institutions withhold some of the withdrawal — between five and 30 per cent depending on the province and total sum — and, depending on a person’s

Why more Canadians are raiding their RRSPs

For the past 22 years, the Home Buyers’ Plan has helped more than 2.5 million Canadians borrow money from their RRSPs to help make the dream of home ownership a reality. However, the $25,000 maximum that can be withdrawn per person doesn’t give prospective homeowners a lot to work with.

The reasoning behind this plan is fairly straightforward. First-time home buyers (or anyone who hasn’t owned his or her primary residence in the past five years), are permitted to take up to $25,000 from their retirement savings without penalty as long as it is paid back within 15 years, which starts two years after the withdrawal occurs.

If you are buying with your spouse or common-law partner, it is possible to withdraw