54% of Canadians claim they do not contribute to a TFSA or RRSP at all
TORONTO, Feb. 20, 2019 /CNW/ - A new study reveals that only 26 per cent of Canadians are planning on taking advantage of a Registered Retirement Savings Plan (RRSP) this year, a decrease from last year's 33 per cent that planned to contribute.
The impending RRSP contribution deadline (March 1) is a chance for Canadians to review their finances and determine how much they can contribute to maximize their refund or minimize what they owe in income tax.
The study also shows that while they might not meet the March 1 deadline, 46 per cent of Canadians will contribute to a RRSP or a Tax-Free Savings Account (TFSA) at some point – though this is a 13% decrease from 2018.
"Canadians should take advantage of the savings opportunities available to them where possible," says Lisa Gittens, H&R Block Senior Tax Professional. "With both RRSP and TFSA contribution limits increased this year to $26,500 and $6,000 respectively, Canadians now have more room than ever to help them achieve their financial goals, maximize refunds and prepare for the future."
While there are many reasons why Canadians may not be taking advantage of RRSP or TFSA contributions, including competing financial demands that make it difficult to put money aside, Canadians can still carry forward any contribution availability for either account to next tax season.
Filers should be aware that every penny contributed to a RRSP is tax deductible, while amounts contributed to TFSAs are not tax deductible and won't affect their tax situation. To build up RRSP eligibility, Canadians must file a tax return, even if they don't owe any taxes.
The new survey from H&R Block Canada also found that:
- Only 30% of Canadians with an income less than $50,000 per year plan to contribute to a TFSA or RRSP this year, while almost 7 out of 10 (69%) of Canadian with an income over $100,000 plan to contribute to a TFSA or RRSP.
- Slightly fewer women (44%) than men (49%) plan to contribute to a TFSA or RRSP.
- Canadians aged 18-34 are the most likely to contribute (35%) to a TFSA this year.
- Canadians aged 35-54 (38%) are the most likely to contribute to a RRSP before the deadline this year.
- The Atlantic provinces are the least likely to contribute to a TFSA or RRSP (32%), while residents of Saskatchewan are the most likely to contribute (65%).
- Canadians are more likely to contribute to a TFSA (32%) than an RRSP (26%).
Canadians are encouraged to take time to understand how they can take full advantage of credits and deductions, particularly those associated with RRSPs. For more information, visit one of H&R Block's offices or online at www.hrblock.ca.
About H&R Block Canada
For 55 years, H&R Block Canada is Canada's tax leader, with over 1,100 locations across Canada, and Online Tax Software. H&R Block's comprehensive education program, Tax Academy, trains experts and continually updates their skills. Learn more at www.hrblock.ca or 1-800-HRBLOCK.
About the Survey
From February 6th to February 7th 2019 an online survey of 1,514 randomly selected Canadian adults who are Maru Voice Canada panelists was executed by Maru/Blue. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 2.5%, 19 times out of 20. The results have been weighted by education, age, gender and region (and in Quebec, language) to match the population, according to Census data. This is to ensure the sample is representative of the entire adult population of Canada. Discrepancies in or between totals are due to rounding.
SOURCE H&R Block Canada Inc.
For further information: Vanessa Andres, Ketchum Public Relations, 416-355-7432, [email protected]