Canadians between ages of 18 and 34 ramping up RRSPs; Shifting top financial priorities now include retirement savings
TORONTO, Jan. 19, 2012 /CNW/ - The 22nd Annual RBC RRSP Poll finds that 43 per cent of Canadians between the ages of 18 and 34 now
hold RRSPs. This represents a shift from last year, when the number of younger
Canadians holding RRSPs dropped to its lowest point in almost a decade
(39 per cent). In addition, retirement savings has moved up to fourth
place on the list of financial priorities for this age group, compared
to its seventh place position last year.
What has slipped significantly for the 2011 tax year is the percentage
of younger Canadians who plan to contribute the maximum to their RRSPs.
In the 2010 tax year, young Canadians were the most likely age-group to
maximize their RRSP contribution (33 per cent); for the 2011 tax year, they are
the least likely to do so at 16 per cent (compared to 25 per cent of
"Younger Canadians have any number of competing 'here and now' financial
needs, in addition to trying to save for their future goals." advised
Jason Round, head, Financial Planning Support, RBC Financial Planning.
"We want to ensure young Canadians know all the options available to
help them. The tax-sheltering benefits of RRSPs can help to buy your
first home and grow your money for future goals. Contributing to an
RRSP also helps to reduce your taxable income today."
The RBC RRSP poll indicates that financial priorities are shifting among younger Canadians. Compared to 2010, more young
Canadians are focusing on home ownership (49 per cent compared to 44
per cent) and retirement savings (35 per cent compared to 26 per cent).
A lower priority is being placed on regular payments to reduce or
eliminate debt (48 per cent compared to 56 per cent) and general
savings for a rainy day (39 per cent compared to 45 per cent).
"Trying to take care of day-to-day expenses, save up for that first home
and put aside money for future goals, such as retirement, may feel
overwhelming, but it can be done if you set your priorities and make
informed decisions," added Round. "It doesn't cost anything to go
online and check out some of the resources available for saving and
investing or first time home buying, or to meet with an advisor who can
help you achieve your financial goals."
RRSP Fast Facts for the 2011 Tax Year
18 to 34
Have an RRSP
43 per cent
60 per cent
No withdrawals from RRSP in the past year
88 per cent
80 per cent
Contribute through a regular contribution plan
48 per cent
35 per cent
Plan to make the maximum allowable contribution
16 per cent
25 per cent
Contributing the same amount as last year
41 per cent
52 per cent
Contributing more than last year
35 per cent
27 per cent
About the 22nd Annual RBC RRSP Poll
This survey was conducted by Ipsos Reid between October 24 and November
15, 2011 via interviews of 4,135 Canadian adults, including a random
sample of 1,224 adults in the general population (aged 18 and over) and
2,911 Boomers aged 50-69 with household financial assets of $100,000 or
more. The results are based on samples where quota sampling and
weighting are employed to balance demographics and ensure that the
sample's composition reflects that of the actual population according
to Census data. Quota samples with weighting from the Ipsos online
panel provide results that are intended to approximate a probability
sample. A weighted probability sample of 1,224 Canadian respondents,
with 100 per cent response rate, would have an estimated margin of
error of ±3 per cent, 19 times out of 20. Data for 2,911 Boomers are
unweighted with a margin of error of ±2 per percentage points, 19 times
out of 20.
About RBC's financial planning advice, resources and interactive tools
The RBC Advice Centre offers free online advice, resources and tools
regarding RRSPs - including the RSP-Matic® Savings Calculator and updates on the federal government's RRSP First Time Home Buyers' Plan. Whether Canadians want to save and invest, buy their first home, get more from their day to day banking, protect what's important, or
take care of their businesses, the RBC Advice Centre can help answer their questions. Interactive tools and calculators
provide customized information covering many facets of personal
finance. With the guidance of RBC advisors who are available to chat
live, Canadians have access to free, no-obligation professional advice
about RBC products and services and personalized one-on-one service.
Further information is available at rbcadvicecentre.com.
Image with caption: "22ND Annual RBC RRSP Poll: RRSP ownership in 2011 (CNW Group/RBC)". Image available at: http://photos.newswire.ca/images/download/20120119_C5168_PHOTO_EN_9043.jpg
Image with caption: "22ND Annual RBC RRSP Poll: Maximum RRSP contribution intentions for 2011 tax year (CNW Group/RBC)". Image available at: http://photos.newswire.ca/images/download/20120119_C5168_PHOTO_EN_9041.jpg
Image with caption: "22ND Annual RBC RRSP Poll: Top financial priorities (CNW Group/RBC)". Image available at: http://photos.newswire.ca/images/download/20120119_C5168_PHOTO_EN_9045.jpg
For further information:
Kathy Bevan, RBC Corporate Communications, (416) 974-2727 or email@example.com
Kate Yurincich, RBC Corporate Communications, (416) 974-1031 or firstname.lastname@example.org