In an optimal setting one would find a way to do both.

GordW, my thoughts exactly. 

optimal indeed. unfortunately we are subject to the laws of reality.  Maybe when the debts are paid off a person could take the same amount they have been paying monthly and sock it away. 

That's what I hope too trishcuit. I wish I could get some savings going, so when something like car goes or I need to see a dentist, I don't have to pull out the credit card. That's been my problem for years and it's sinking me!

It depends.

There are tax breaks for putting stuff away. 

You really need to work the numbers.

In a optimal setting, one wouldn't have debt.

THere are and there aren't Pinga.

In our case, where we could probably zero out our taxes without RRSP contributions the tax-based incentive to save for retirement is cut  way back.  If one's income and deductions already balance out then saving has little tax purpose.