Fewer Canadians intend to contribute to their RRSPs this year but contributions have grown

By Natasha Tremblay | February 02 2017 09:45AM

Photo: Freepik

The annual Registered Retirement Savings Plan survey by BMO Financial Group revealed fewer Canadians plan to contribute this year than last year (46 per cent this year compared to last year’s 50 per cent). However, for those who have already contributed, the average amount invested has increased by over $1,100 from last year with an average amount of $5,088 contributed.

Robert Armstrong, Vice President of BMO Global Asset Management, said “Though overall intention to contribute has declined, it’s encouraging to see that Canadians who have already contributed for the 2016 tax year have increased their contribution significantly.”

BMO’s survey showed the reasons for not making a contribution this year include lack of money (42 per cent), prioritizing other expenses (28 per cent), and choosing other investment options over an RRSP contribution (10 per cent).

Regionally, the breakdown is as follows :

  • In Atlantic Canada, 40 per cent plan to contribute an average of $2,439 this year, with an average contribution so far of $5,557
  • Quebec has seen an average of $4,521 contributed, with 45 per cent planning to contribute $3,107 on average
  • 46 per cent of Ontarians plan to contribute an average of $3,532, the average amount contributed so far being $4,485
  • In the Prairies, 42 per cent plan to contribute an average of $2,589, the average amount to date being $2,112
  • 56 per cent of Albertans plan to contribute on average $3,420 with an average of $7,333 contributed to date
  • In B.C., the average amount contributed is $6,623 with 44 per cent of the population planning to contribute $3,897 on average
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