Fewer Canadians to make RRSP contributions

With the RRSP deadline only eight weeks away, just 31% of Canadians plan to make a contribution for the 2013 tax year, a decrease from 39% in both 2012 and 2011.

Scotiabank’s Annual Investment Poll also finds that 74% of those with RRSPs (and who have thought about contributing more) cite lack of affordability as the top reason for not contributing more often, compared with 84% in 2012.

Among Canadians who have an RRSP, 40% have withdrawn funds from their RRSP versus 36% in 2012.

Again this year, the top reason for taking money out of RRSPs is to take advantage of the Home Buyers’ Plan to buy or build a first home (16% versus 15% in 2012), followed by covering day-to-day living expenses (8% versus 5% in 2012) and paying down debt (8% versus 6% in 2012).

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