Survey also reports strong RRSP investment intentions
WINNIPEG, Nov. 27 /CNW/ - A record-breaking 75 per cent of Canadians own
RRSPs according to the sixth annual RRSP Investment Intentions poll from
Investors Group. RRSP ownership has increased from 64 per cent last year, the
second consecutive year this number has grown by 10 points or more.
Among Canadians who already have a RRSP, or plan to start one this year,
three-quarters plan to contribute the same or more to their RRSP portfolios in
the 2007 tax year than they did in 2006.
RRSP contributions strong across all age groups
Contribution intentions are strongest among respondents 55-years of age
and under. Seventy-eight (78) per cent of Canadians aged 25 to 34 plan to
contribute the same or more than they did last year. This number jumps to
82 per cent among 35 to 44 year olds and to 84 per cent among 45 to
54 year olds.
With older adults saving for their rapidly approaching retirement years,
the message about saving seems to be getting through to the younger
generation, as well. A strong majority of Canadians aged 25 to 34 (60 per
cent) indicate they have an investment portfolio.
Canadians confident about debt in retirement
Investors Group's RRSP Investment Intentions Poll found more than
one-third of non-retired Canadians (35 per cent) plan to carry up to $100,000
in debt into retirement. Among those planning to carry debt into retirement,
45 per cent say it will be in the form of credit cards, lines of credit or
personal loans, and 28 per cent say it will be for a mortgage on a primary
"A focus on saving while carrying debt may seem contradictory, but it
also suggests Canadians are balancing their lifestyles today against their
plans for the future," says Debbie Ammeter, Vice President, Advanced Financial
Planning, Investors Group. "Most households carry monthly financial
commitments, such as mortgages, car loans, and credit card payments. The
challenge is finding the right comfort level in this balancing act."
"Factors contributing to a greater comfort level among Canadians in
managing debt include historically low interest rates, a healthy Canadian
dollar and strong market performance," says Ammeter.
Home equity supplementing retirement income
The recent strength of the Canadian housing market may also influence how
Canadians plan to fund their retirement. One-in-five non-retired homeowners
(19 per cent) plan to use home equity to generate retirement income.
Of those hoping to generate income from their home equity, 40 per cent
believe their home will contribute between 10 and 30 per cent of their
retirement income. Some of the most popular home equity strategies this group
will consider include selling their home and buying something smaller
(54 per cent); taking out a line of credit secured by home equity
(22 per cent); taking out a reverse mortgage (15 per cent); or selling the
home and renting (seven per cent).
A total of 2,055 surveys were completed with Canadian adults between
September 4th and September 13th 2007, using the Harris Decima online panel. A
sample of 2,055 respondents provides estimated proportions that are accurate
to within, at most, +/- 2.2% at the 95% confidence level. That is, 95 times
out of 100, the real value of the variable in the total population will lie
within +/- 2.2% of the estimated proportions provided by the sample. One time
out of 20, the real value of the variable in the population will fall outside
Investors Group, founded in 1926, is a national leader in delivering
personalized financial solutions to Canadians through a network of over
4,200 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 banking 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 $125 billion in total assets under management.
For further information:
For further information: Ron Arnst, Investors Group, (204) 956-3364,
firstname.lastname@example.org; Teresa Pagnutti, Environics Communications,
(416) 969-2721, email@example.com