BMO survey flags improvement in RRSP contributions

More than one-third (35 percent) of Canadians say that they have already contributed to a registered retirement savings plan before the March 3, 2014 deadline, up five percent from this time last year, new research reveals.

BMO Financial Group reports this finding in its fourth annual national study of Registered Retirement Savings Plan. RRSPs are the Canadian equivalent of a U.S. tax-qualified individual retirement account.

The report reveals that 64 percent of those who have already made a contribution have contributed at least $2,000 to their RRSP and 40 percent have put in at least $5,000.The study also reveals that:

• Forty-three percent of Canadians report that they will make a contribution to their RRSP by the March 3 deadline. This is down from the 50 percent who made a contribution last year;
• Almost two-thirds (64 percent) of Canadians have an RRSP, compared to 67 percent this time last year;
• One-third reported that they usually contribute the maximum amount to their RRSPs;
• Last year, Canadians contributed an average of $3,544 to their RRSPs.

The study also examines the reasons why Canadians are not planning to make a contribution to an RRSP this year. These include:

• Not having enough money to make a contribution (37 percent);
• Having other expenses which take precedence (33 percent);
• Prioritizing other investments (11 percent).

The following is a summary of RRSP contributions by region: