Canadians are less confident in their ability to save for retirement and in the reliability of financial markets than they were a year ago, according to a new survey from BMO Financial Group.
The poll of 1,520 Canadians, conducted in November by Leger Marketing, found that 69% will be contributing the same amount or more to their RRSP this tax year compared with the 2010 tax year, when Canadians contributed an average of $4,700 to their RRSPs. However, 71% of respondents said they are concerned about the performance of their RRSP, given the current state of the economy and volatility of the financial markets. In addition, 42% are less optimistic about financial markets than they were a year ago, compared with 21% who indicated this sentiment in BMO’s 2010 survey. Additionally, 36% say they are not confident in their ability to save for retirement, compared with 18% a year ago.
“The volatility we have experienced in the financial markets over the past year has increased concern among Canadians about their ability to save for retirement,” said Caroline Dabu, vice-president, retirement and financial planning, with BMO Financial Group. “The current financial climate has made saving more of a priority for Canadians than ever before. It’s encouraging that the vast majority of Canadians who will be contributing to an RRSP will be contributing the same amount or more than last tax year. However, given the market uncertainty over the last several months, it’s critical that Canadians have a financial plan that includes a retirement saving strategy.”