Majority of Canadians made RRSP contributions

Sixty-five percent of Canadians made a contribution to their RRSP before Monday’s midnight deadline, according to BMO Financial Group.

Its Fifth Annual Post-RRSP Deadline Study notes this is a slight increase over last year, when 63% of Canadians made a contribution.

Canadians contributed an average of $3,518 to their RRSPs this year, down slightly from an average of $3,544 last year. When looking at where those dollars went, the study found that the top investment choices for Canadians included the following:

  • mutual funds (49%);
  • guaranteed investment certificates (35%);
  • bonds (18%);
  • stocks (17%); and
  • exchange-traded funds (12%).

“It’s a good sign that the number of Canadians contributing to their RRSP has remained steady since last year,” says Chris Buttigieg, senior manager, wealth planning strategy, with BMO Financial Group.

When asked about the amount of money Canadians contributed to their RRSPs, the study found that two-thirds wish they had been able to contribute more this year. Other key findings included the following:

  • 54% think they contributed as much as they could;
  • 49% are confident the amount they contributed leaves them on track to realize their ideal retirement lifestyle; and
  • 35% say they could have contributed more but did not.

The study also revealed that, of those who anticipate receiving money back from the Canada Revenue Agency after making an RRSP contribution, the majority of Canadians plan on saving or investing the money (36%) or using it to pay down non-mortgage debt (26%).

Other intentions for RRSP tax refunds include paying down their mortgage (18%), travelling or purchasing leisure items (16%), and renovating or paying household expenses (10%).

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