Contributions jumped 1.8 per cent in 2003, Statistics Canada cites increase in limits as reason
For the first time in three years, Canadians socked more money away in a Registered Retirement Savings Plan (RRSP) in 2003, according to the latest figures from Statistics Canada. Though the number of people who made contributions to their RRSPs declined slightly.
In total, 5.9 million taxfilers contributed nearly $27.6 billion to an RRSP. Contributions rose 1.8 per cent from 2002, while the number of contributors was down 0.7 per cent. (Data came from the income tax returns filed in the spring of 2004.)
The rebound in contributions followed two years of declines and may have been the result of an increase in the maximum annual RRSP contribution limits, Statistics Canada said.
The limits are based on 18 per cent of the previous tax year’s earned income, to a fixed maximum ($14,500 in 2003, up from $13,500 in 2002), less any pension adjustment, plus any carry forward of unused room.
Women accounted for 38 per cent of total RRSP contributions, down from 39 per cent in 2002. Their median contribution remained virtually unchanged at $2,100.
To be eligible to contribute to an RRSP, a taxfiler must have either new room as a result of qualifying income from the previous year (generally employment income) or unused room from earlier years.
Less than 10 per cent of RRSP room being used
In the 2003 tax year, 78 per cent of those who filed taxes had room from either the previous or earlier years. Of these about 34 per cent actually made contributions.
But the total contributions of $27.6 billion represented only about nine per cent of the total room available to those individuals.
Geographic breakdown
Contributions rose in most provinces and territories, with the exception of Nova Scotia, Saskatchewan, Prince Edward Island and Nunavut.
The number of contributors fell slightly in all provinces and territories, except the Northwest Territories and Newfoundland and Labrador.
Contributions in the Northwest Territories recorded the largest percentage increase in contributions at five per cent, followed by those in New Brunswick (up 4.3 per cent) and Newfoundland and Labrador (up 3.1 per cent.)
Nunavut continued to record the highest median contribution ($4,300) just as it has since coming into existence in 1999. Newfoundland and Labrador had the largest shift in median contribution. In 2003 the province’s median contribution was $2,200, up from $2,000 in 2002.
Median contributions across the country
In total, 5.9 million taxfilers contributed nearly $27.6 billion to an RRSP. Contributions rose 1.8 per cent from 2002, while the number of contributors was down 0.7 per cent. (Data came from the income tax returns filed in the spring of 2004.)
The rebound in contributions followed two years of declines and may have been the result of an increase in the maximum annual RRSP contribution limits, Statistics Canada said.
The limits are based on 18 per cent of the previous tax year’s earned income, to a fixed maximum ($14,500 in 2003, up from $13,500 in 2002), less any pension adjustment, plus any carry forward of unused room.
Women accounted for 38 per cent of total RRSP contributions, down from 39 per cent in 2002. Their median contribution remained virtually unchanged at $2,100.
To be eligible to contribute to an RRSP, a taxfiler must have either new room as a result of qualifying income from the previous year (generally employment income) or unused room from earlier years.
Less than 10 per cent of RRSP room being used
In the 2003 tax year, 78 per cent of those who filed taxes had room from either the previous or earlier years. Of these about 34 per cent actually made contributions.
But the total contributions of $27.6 billion represented only about nine per cent of the total room available to those individuals.
Geographic breakdown
Contributions rose in most provinces and territories, with the exception of Nova Scotia, Saskatchewan, Prince Edward Island and Nunavut.
The number of contributors fell slightly in all provinces and territories, except the Northwest Territories and Newfoundland and Labrador.
Contributions in the Northwest Territories recorded the largest percentage increase in contributions at five per cent, followed by those in New Brunswick (up 4.3 per cent) and Newfoundland and Labrador (up 3.1 per cent.)
Nunavut continued to record the highest median contribution ($4,300) just as it has since coming into existence in 1999. Newfoundland and Labrador had the largest shift in median contribution. In 2003 the province’s median contribution was $2,200, up from $2,000 in 2002.
Median contributions across the country
| Jurisdiction | Median contribution |
| Canada | $2,600 |
| Newfoundland and Labrador | $2,200 |
| Prince Edward Island | $2,000 |
| Nova Scotia | $2,000 |
| New Brunswick | $2,000 |
| Quebec | $2,400 |
| Manitoba | $2,100 |
| Saskatchewan | $2,200 |
| Alberta | $2,800 |
| British Columbia | $2,900 |
| Yukon | $3,100 |
| Northwest Territories | $3,400 |
| Nunavut | $4,300 |
