Twice as many younger Canadians plan to maximize contributions
Just one-quarter (27 per cent) of Canadians with an registered retirement savings plan (RRSP) plan to maximize their contributions for the 2012 tax year, according to an RBC poll.
But twice as many people between the ages of 18 and 34 with an RRSP said they will contribute the maximum allowable amount this year (32 per cent) compared to last year (16 per cent), found the survey of 1,225 adults.
More than one-half (55 per cent) of Canadians have an RRSP, in line with 54 per cent in 2009 and down from 60 per cent in 2011.
Among those who plan to make a one-time contribution to their RRSPs, 27 per cent already did so in January-February 2012; another 25 per cent plan to do so in February 2013, found RBC.
The average planned RRSP contribution for the 2012 tax year is $4,025 — the lowest level in four years.
Among Canadians who have an RRSP, 73 per cent plan to contribute at least as much as what they contributed for 2011; almost one-half (46 per cent) of those aged 18 to 34 said they will contribute more for 2012, found the survey.
Only one-third of RRSP investors make regular contributions through a plan. Mutual funds remain the top planned RRSP investment choice (46 per cent) for the 2012 tax year, followed by guaranteed investment certificates (24 per cent) and savings accounts (22 per cent).
