Despite the widespread adoption of the RRSP, one third of Canadians say they will not make a contribution to their plan this year, according to a survey commissioned by BMO Financial Group.
Of those who are still planning to make a contribution, 80% claim they will contribute the same amount as last year, or more. According to Statistics Canada, the median RSP contribution last year was $2,680.
“Securing your retirement is one of the key things that you can do to improve your financial wellbeing,” says Tina Di Vito, head of the BMO Retirement Institute.
“The survey indicates that there is a real need for Canadians to become more familiar with what they hold within their RSP portfolios in order to balance risk and deal with the inevitable ups and downs of the markets.”
When it comes to investing their RRSP assets, many admitted they didn`t even know what they held in their plan, yet 66% were confident believe they are on the right path when it comes to saving for their retirement.
In terms of investment outlook, 80% of Canadians are at least as optimistic about the coming year as they were for 2010. Four in ten agreed that borrowing to make an RRSP contribution was a good investment strategy.
The study shows that for many Canadians, there remains an “RRSP season” between November and the beginning of March. But the majority (59%) said they make their contributions throughout the year, as most advisors would recommend.