Two-Thirds of Canadians Will Contribute to RRSPs

By Andrew Rickard | January 19 2015 08:45AM

A survey conducted by BMO Financial Group reveals that 64% of Canadians plan to make a contribution to their Registered Retirement Savings Plans (RRSP) before the March 2, 2015 deadline.

The survey also showed that 42% of the respondents had already contributed to an RRSP, an increase from the 35% reported last year. Those who had already contributed to their RRSPs deposited an average amount of $3,738. This is an improvement over the 2013 tax year, when the average contribution amount was $3,518. Of those who are still planning to contribute to their RRSPs but have not done so, the average amount they expect to deposit is $2,892.

BMO notes that men are more likely than women to set aside money for retirement, with 74% of men making an RRSP contribution before the deadline, compared to 55% of women. Overall, 73% of those surveyed have an RRSP, up from the 64% who said owned one in last year’s survey.

As for why people do not contribute, 28% thought they did not have enough money, 19% indicated they have other expenses which take precedence, and 10% said they have other investment options that take priority over RRSPs.