Only one in three will invest their tax refundsBy Andrew Rickard | March 04 2016 01:33PM
According to a survey conducted for BMO, about half of Canadians contributed to their RRSPs in 2015. However, only a third of those who expect a tax refund plan to save or invest it.
A BMO poll found that 53% of the respondents contributed to their RRSP before the February 29 deadline this year. The BMO survey also found that the average contribution this year is $4,117, up from the $3,737 and $3,518 that previous BMO polls reported in 2015 and 2014 respectively.
In addition, BMO asked about the effect that recent market volatility had on their RRSP contributions; 42% of the respondents said that market volatility played no role while 37% stated that it did. For those for whom volatility was a factor, 19% indicated that market volatility caused them to contribute more, while 18% said they contributed less.
What do people plan to do with the tax refunds their RRSP contributions generated? The BMO survey revealed that 33% plan to save or invest the money, while 16% will put the money towards their mortgage, 14% will spend it on home renovations, and 13% will use it for travel or to buy leisure items.