Tax-Free Savings Account contributions gain momentum
WINNIPEG, March 5 /CNW/ - After a year of economic uncertainty, many Canadian investors are turning the page and moving forward. According to the fourth annual Investors Group RRSP Exit Poll, the 2009 tax year saw increases in the number of Canadians making contributions to Registered Retirement Savings Plans and Tax Free Savings Accounts.
36 per cent of Canadian adults say they made RRSP contributions during the 2009 tax year - an increase from 31 per cent who said the same in the 2009 Exit Poll. Of those who contributed to their RRSP, 37 per cent say they also contributed to a Tax Free Savings Account. Overall, 31 per cent of investors say they have opened a TFSA while last year at this time 17 per cent of Canadians said they had made a TFSA contribution.
"With both offering tax saving advantages and flexibility, the RRSP and TFSA are two sides of the same coin," said Debbie Ammeter, Vice-President, Advanced Financial Planning Support at Investors Group. "It's encouraging to see more Canadians taking advantage of ways to keep more money working for them."
The Investors Group poll found 16 per cent of Canadians chose to "park" their RRSP contributions by investing in short-term and typically lower risk vehicles, such as bonds and money market funds. This is unchanged from the previous year.
Benefits of advice
Canadians who consulted a financial advisor were clearly pleased with the experience. 82 per cent say they found their advisor helpful or very helpful and 17 per cent decided to contribute more money to their RRSP after speaking with an advisor.
"Working with a financial advisor helps Canadians build their retirement plans and keep them on track," Ammeter said. "A well developed plan that includes lifestyle and financial considerations is a key factor in a rewarding and enjoyable life in retirement."
About the Survey Methodology: These data were collected through a custom telephone survey on March 2nd and March 3rd, 2010. In total, 978 interviews were completed. A sample of the same size has a margin of error of 3.1%, 19 times out of 20. The margin of error is larger for specific regions and demographics.
Investors Group, founded in 1926, is a national leader in delivering personalized financial solutions to Canadians through a network of over 4,600 Consultants located throughout Canada. In addition to an exclusive family of mutual funds and other investment vehicles, Investors Group offers a wide range of insurance, securities, mortgage and other financial services. Investors Group is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's premier financial services companies with over $120 billion in total assets under management.
SOURCE Investors Group Inc.
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