Statistics Canada is reporting on the number of tax filers making contributions to their registered retirement savings plans (RRSPs), showing a return to a trend of decreased savings which began in 2008.
After two blockbuster years where tax filers increased their RRSP contributions by 13.1 per cent and 12.2 per cent in 2020 and 2021 respectively, in 2022, the total contributed to RRSPs was down 3.4 per cent over the previous year to $54.2-billion.
They say the proportion of tax filers also dropped off 0.7 per cent to 21.7 per cent of all filers in 2022, resuming a 12-year downward trend which ran from 2008 to 2019 before pausing in 2020 and 2021.
Nunavut on top
The median RRSP contribution increased to $3,910. Contributors in Nunavut had the highest median RRSP contribution of $4,560 in 2022. Yukon was the only province or territory with an increase in total RRSP contributions. Northwest Territories total contributions declined 17.2 per cent while Nunavut total contributions declined 11.6 per cent. “The proportion of tax filers reporting RRSP contributions decreased in all age groups,” they add.
Those between 55 and 64 years of age reported the largest decrease in total contributions, followed by those between 45 and 54 years of age. Total contributions dropped 6.1 per cent and 4.5 per cent respectively for these two cohorts. “These two age groups drove the overall decrease in RRSP contributions in 2022. The two youngest age groups, zero to 24 years of age and 25 to 34 years of age (these two groups increased total contributions by three per cent and 0.7 per cent, respectively), were the only groups with an increase in total RRSP contributions.”
