RRSP contributions set to rise

Canadians plan to contribute more to their RRSP, according to a poll.

The 24th Annual RBC RRSP Poll finds that the amount adults plan to contribute by this year’s March 3 deadline has risen to an average of $4,653, up about $500 compared with last year.

The poll indicates that younger Canadian adults in particular—those ages 18 to 34—are showing increased attention to RRSPs. Their planned contribution amount has jumped up by 39% to an average of $4,329 compared with $3,104 last year.

Half of this age group now own RRSPs—the highest number in the past six years and a full 10 percentage points higher than 2012. Overall, 59% of Canadians now have RRSPs, up from 55% in 2012.

Other key findings from the survey show the following:

  • Regular contribution plans continue to be the top means for adding money into RRSPs, with 34% making regular contributions. Of these: 61% contribute regularly (weekly, biweekly, monthly), 25% make one-time contributions and 10% contribute whenever they have some money
  • Twenty-three percent plan to contribute the maximum allowable amount
  • Seventy-two percent of RRSP holders report they have unused contribution room
  • Eighty-one percent aren’t planning to change the investment mix within their RRSP
  • The top three investment choices in RRSPs are: mutual funds (43%), savings accounts (22%) and guaranteed investment certificates/term deposits (20%)

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