Of those still planning to contribute, many do not have the money set
TORONTO, Feb. 23, 2015 /CNW/ - With just one week to go until the March
2nd deadline, a new poll from CIBC (TSX: CM) (NYSE: CM) finds that more than half (54 per cent) of Canadians will not be making a contribution to their RRSPs for the
2014 tax year. Less than one-third (32 per cent) of Canadians expect to add to their retirement funds and of those who
may still make a contribution, less than half (42 per cent) have the money to do so.
Key findings of the poll include:
54 per cent of Canadians say they are not making a contribution to their RRSPs for
the 2014 tax year
32 per cent of Canadians intend to contribute for the 2014 tax year
16 per cent have already made their entire RRSP contribution for 2014
16 per cent say they still plan to contribute or make an additional contribution
towards their 2014 RRSPs;
14 per cent say they are not sure yet whether they will contribute or not
Of those who may still make a an RRSP contribution before the March 2
deadline, only 42 per cent have the funds for their contributions set aside
"With the deadline fast approaching, many Canadians could miss the
opportunity to contribute to their retirement through an RRSP before
the March 2nd deadline," says Christina Kramer, Executive Vice President, Retail and
Business Banking, CIBC. "Among those who intend to contribute but don't
have any money set aside, there is a chance that some of them will miss
out on contributing this year as well."
Don't wait to the last minute
Of those Canadians who said they were still planning on contributing
most of them do not have the money for their contributions set aside. Half (50 per cent) said they planned to get the money for their contributions by taking
it from their earnings.
"It's very challenging to save up a year's worth of your RRSP
contribution in the few weeks before the deadline," says Ms. Kramer.
"At this time of year, some families are still focused on paying off
their holiday purchases or planning spring getaways, which makes
pulling an RRSP contribution together at the last minute even more
Set up automatic contributions now for next year
"For those that may be scrambling this year to make an RRSP contribution
by the deadline, this is an opportune time to start planning for next
year with regular contributions that are easier to work into your day
to day budget," says Ms. Kramer.
Setting up a regular investment plan to automatically withdraw smaller
amounts from your account throughout the year towards an RRSP, rather
than trying to find the funds for a large lump payment at the deadline,
will help ensure you don't miss the opportunity to contribute next
Advice on Maximizing Retirement Savings
Talk to an Advisor - Meet with an advisor to understand your options, and work with them to
develop a plan that can help you in managing multiple financial
priorities and staying on track over the long term.
Contribute regularly - Set up a regular investment plan to automatically withdraw smaller
amounts throughout the year, rather than trying to find the funds for a
large lump payment at the deadline.
Track and manage day-to-day spending - Take a hard look at your budget; saving for retirement may mean
delaying some consumption from the present to the future.
KEY POLL FINDINGS
Percentage of Canadians who plan to make a contribution to their RRSP
for the 2014 tax year:
No, I am not making an RRSP contribution for the 2014 tax year
Yes, I have already made my entire contribution
Yes, I plan to make a contribution/additional contribution by the March
I'm not sure yet
Of those Canadians planning to make an RRSP contribution or not sure,
percentage who already have the funds set aside for their planned
From January 21st to 22nd 2015, and from February 13th to 14th 2015, online surveys were conducted among 1,505 randomly selected
Canadian adults who are Angus Reid Forum panelists. The margin of
error—which measures sampling variability—is +/- 2.53%, 19 times out of
20. The results have been statistically weighted according to
education, age, gender and region (and in Quebec language) Census data
to ensure a sample representative of the entire adult population of
Canada. Discrepancies in or between totals are due to rounding.
CIBC is a leading Canadian-based global financial institution with
nearly 11 million personal banking and business clients. Through our
three major business units - Retail and Business Banking, Wealth
Management and Wholesale Banking - CIBC offers a full range of products
and services through its comprehensive electronic banking network,
branches and offices across Canada with offices in the United States
and around the world. You can find other news releases and information
about CIBC in our Media Centre on our corporate website at www.cibc.com.
For further information:
Caroline Van Hasselt, Director, External Communications, 416-784-6699 or firstname.lastname@example.org