Affordability continues to be a barrier for Canadians hoping to increase their nest eggs before the March 1st RRSP contribution deadline (64%, compared to 59% in 2011, 53% in 2010), finds a Scotiabank poll.
“An investment may be more affordable than you think—the key is to get a solid financial plan in place to help overcome affordability issues,” says Mike Henry, Scotiabank senior vice president and head of retail payments, deposits and lending.
Read: Canadians stressed about RRSP deadline
Also, fewer people feel they have invested enough (19% in 2012 versus 24% in 2011). Of those investors who cite lack of affordability, most don’t have a written financial plan (70%), aren’t saving for retirement (77%) and aren’t on track to achieving their retirement goals (80%).
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Additional findings include:
- 56% have an RRSP and 44% have a TFSA;
- 39% plan to contribute to an RRSP for the 2012 tax year;
- 51% started to invest before the age of 30;
- 23% of those aged 18- to 34-years have a financial plan;
- 23% would spend less and put more of their money into their investments;
- Most continue to have savings in a regular savings account (64%), with half having mutual funds (48%), or putting their savings in a high interest savings account (48%).