Despite market turmoil, Canadians are saving more in their registered retirement savings plans, led by strong growth among millennials, according to the Bank of Montreal’s annual RRSP study.
Nationally, the average amount held in RRSPs is $101,155 — a 21 per cent increase from $83,635 in 2016.
Millennials account for the greatest increase in amounts held, at 87 per cent more this year compared to 2016. In dollar figures, amounts held by millennials rose to almost $29,000 from about $15,000 in 2016. Over the same period, amounts held by baby boomers in RRSPs saw a 30 per cent increase, to about $179,000 from $137,000.
The study also examined investor attitudes. Amid greater market volatility, 71 per cent of respondents self-identified as cautious investors. As well, Canadians aren’t confident in their investment know-how, with 42 per cent of respondents identifying themselves as not knowledgeable and 29 per cent labelling themselves as newbie. investors.
Timing may also be a consideration since the study found that making RRSP contributions before the deadline is top of mind for Canadians, with 62 per cent of respondents saying they plan to make a contribution or have already done so. Those who already contributed put in an average of $5,247.
Regionally, Canadians in the Prairies hold the greatest amounts in their RRSPs, at nearly $130,000, while those in the Atlantic provinces hold the least, at about $78,000.
This article was originally published on Benefits Canada‘s companion site, Advisor.ca.