Canadians scrambling to make RRSP contributions

With the RRSP deadline fast approaching, Canadians are trying to scrape together some money to make a contribution.

A CIBC poll finds that 56% of Canadians say they will contribute to an RRSP, a tax-free savings account or both in 2014, but 64% of those planning to contribute say they don’t have enough money set aside.

The gap comes from a lack of regular savings, as only 31% have a regular investment plan for retirement, where money is put away automatically throughout the year.

“While it is encouraging that so many Canadians are planning to invest in their retirement this year, most do not yet have the money set aside to make the contribution they want to,” says Christina Kramer, executive vice-president, retail and business banking, with CIBC.

Fifty-eight percent of Canadians say that saving regularly will make it possible for them to retire in their 60s, but 31% follow through with a regular investment plan, pointing to a gap between intention and action.

Canadians between the ages of 45 and 54 were no better off than those much younger when it came to regular savings. Just 34% of them say they set up a regular investment plan—the same percentage as those between the ages of 25 and 34.