Many Canadians are getting a head start on saving for retirement this year, but fewer plan to save.
A BMO study finds that 35% have already contributed to an RRSP by the March 3 deadline, an increase of five percentage points from this time last year.
Sixty-four percent of those who have already made a contribution have contributed at least $2,000 to their RRSP, and 40% have put in at least $5,000.
However, 43% plan to make a contribution to their RRSP before the deadline, down from 50% who made a contribution last year.
“It’s reassuring to see that many Canadians are being proactive by contributing to their RRSPs well ahead of the deadline,” says Caroline Dabu, vice-president and head, BMO Wealth Planning Group. “However, according to Statistics Canada, the total unused RRSP contribution amount is estimated to exceed $1 trillion by 2018.”
Canadians contributed an average of $3,544 to their RRSPs. The average contribution by Quebecers ($3,049) was the smallest, while Albertans ($4,462) contributed the most. Just one-third reported that they usually contribute the maximum amount to their RRSPs.
The study also examined the reasons why Canadians are not planning to make a contribution to an RRSP this year. These include not having enough money to make a contribution (37%), having other expenses that take precedence (33%) and prioritizing other investments (11%).
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