There are more Canadians this year with an RRSP account—67% versus 61% last year, finds a study by BMO. But many are not maxing out their annual contributions.

Read: When a client has capital losses in an RRSP

In fact, just one-third are aware of their annual contribution limit, while 60% rarely or never contribute the maximum amount. Only 13% hit the maximum each and every year. As of 2011, the total unused RRSP contribution amount stood at about $500 billion; the figure is estimated to exceed $1 trillion by 2018.

Read: Are you clients dipping into their RRSPs?

Additional findings include:

  • Of those who do not have an RRSP, 49% intend to open one within the next five years;
  • 72% expect to contribute the same amount or more to their RRSP than they did last year;
  • 74% have already made or plans to make a contribution towards an RRSP before the 2012 deadline, compared to 69% last year;
  • Last year’s average contribution amount was $4,670;
  • 68% are concerned about the performance of their retirement savings.

Read: TFSA or RRSP, what’s the right choice?

“During times of market volatility, it’s critical Canadians have a financial plan that includes a retirement component and that they review their investments regularly and seek out the assistance of a financial professional if needed,” says Marlena Pospiech, senior manager, BMO Wealth Planning Group, BMO Financial Group.

Regional Breakdown

Total ATL QC ON MB/SK AB BC
Percentage who have an RRSP
2012 67 64 73 65 65 69 65
2011 61 48 61 63 70 66 51
Percentage who plan to make a contribution
2012 74 79 66 80 61 78 67
2011 68 63 64 73 71 68 68