hen it comes to investing in registered retirement savings plans (RRSPs), young Canadians are taking a decidedly different approach than their parents, according to a poll conducted for RBC Financial Group.
Younger Canadians are more likely to contribute to RRSPs regularly instead of dumping in a lump-sum amount once a year. The poll found 42 per cent of people aged 18 to 34 who have an RRSP made monthly or quarterly contributions. Among investors aged 55 to 59, only 19 per cent made regular contributions.
It found 48 per cent of younger investors have money transferred automatically into RRSPs from their banks or as payroll deductions, versus 25 per cent of older contributors.
“Perhaps those closer to retirement should look to their younger counterparts as an example of how to make their RRSP contribution go further,” said Paul Smith, a spokesman for RBC.
Among older investors, 41 per cent make RRSP contributions in person, compared with 31 per cent in the younger group.
The survey, conducted by Ipsos-Reid, polled 1,205 people in October 2003 and is considered accurate within 2.8 percentage points 19 times out of 20.