Canadians are increasingly willing to take money from their RRSPs to pay off expenses, says a recent Scotiabank poll.
While the top reason for withdrawing money was to buy a first home (40%), the number of withdrawals overall is on the rise. One-third of RRSP holders (36%) reported taking out funds this year, up from 23% in 2005.
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The survey also finds:
- The average amount Canadians withdrew $24,531 from their RRSP in 2012, more than double the amount taken in 2005.
- 14% take money out of their RRSPs to cover day-to-day living expenses, and 6% took money out to pay for vacations.
- Canadians age 50 and up are most likely to withdraw money from RRSPs
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“If Canadians are going to take money out of their RRSP for a major purchase like a house, they need to have a plan in place to return that money as soon as possible,” says Bev Moir, a ScotiaMcLeod wealth advisor.
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