Canadians cutting back on RRSP contributions this year: Scotiabank

Men aged 35 to 54 most likely to contribute

Two in five Canadians (39 per cent) are planning to contribute to a registered retirement savings plan (RRSP) for the 2011 tax season, according to a survey by Scotiabank. Among those who have thought about investing more often in their RRSP than they currently do, affordability (61 per cent) is the top reason for not contributing more often.

In addition to cutting back on RRSP contributions this year, only 46 per cent of the 1,000 Canadians surveyed reported having a financial advisor. When it comes to planning, 32 per cent of Canadians reported having a written financial plan and 39 per cent said it would be easier to save and invest with a five year goal in mind rather than a long-term goal. Three in five (58 per cent) said they would be interested in a five year plan.

Other survey highlights:

•Most Canadians have an RRSP (60 per cent), a drop from 79 per cent last year.

•Forty-eight per cent have a tax-free savings account (TFSA).

•More men (42 per cent) than women (35 per cent) plan to contribute to their RRSP for the 2011 tax year, while those aged 35-54 years lead in the age category (52 per cent) compared to those aged 18-34 (41 per cent) and 55 and over (21 per cent).

•Slightly more than one-quarter (29 per cent) have set up automatic transfers or deposits into an investment plan (down from 34 per cent in 2010).

•Among RRSP holders, one-half (51 per cent) have thought about contributing more to their RRSP than they do now, unchanged from one year ago.

Latest stories