TORONTO, Jan. 19 /CNW/ - The number of Canadians aged 18 to 34 who have
RRSPs has dropped to 39 per cent - the lowest level in almost a decade
- and fully 45 per cent have not started saving for retirement yet,
according to the 21st Annual RBC RRSP Poll.
Overall, retirement savings ranked seventh as a financial priority among
younger Canadians (26 per cent). The RBC poll found that this age group
is more focused on other financial goals such as regular payments to
reduce or eliminate debt (56 per cent), saving for a rainy day (45 per
cent) and homeownership (44 per cent).
The declining number of younger Canadians with RRSPs confirms a downward
trend identified in last year's RBC RRSP Poll and discussed in an RBC Economics report issued in January 2010.
"We're seeing other financial priorities become increasingly top of mind
for younger Canadians who may not realize they are missing out on one
of Canada's best income tax savings vehicles, as well as the potential
to grow their investments more quickly," said Lee Anne Davies, head,
Retirement Strategy, RBC. "Retirement may seem far off in the future
and we understand that paying off debt, purchasing your first home or
raising young families presents competing financial needs, but building
a secure future can and should be part of any plan to meet those
The RBC poll also found that, despite ranking homeownership as third on
their financial priorities list, younger Canadians may be
under-utilizing the RRSP benefits available to first-time homebuyers. A
federal government program allows for tax-free RRSP withdrawals to help
finance the first purchase of a new home; yet only six per cent of 18
to 34-year-olds withdrew money from their RRSP to purchase a home in
the past year.
"Younger Canadians' relatively low participation in the government's
first-time homebuyer's program may in part reflect a lack of
understanding about what an RRSP can do for you well ahead of your
retirement years," added Davies. "The start of the year is a very good
time to sit down with your financial planner or visit your bank branch
and find out what your retirement and investment options are and to
make sure you are making the most of the resources available to you."
2010 RRSP Fast Facts - Canadians aged 18 to 34
The number of Canadians aged 18-34 who have RRSPs dropped to 39 per
cent, which is the lowest number in almost a decade and a five
percentage point drop from 2009.
The overall number of Canadian adults who have RRSPs jumped to 61 per
cent, up from 54 per cent in 2009.
Canadian RRSP holders in the 18-34 age group are most likely to maximize
their RRSP contribution (33 per cent) for the 2010 tax year.
A quarter of Canadians with RRSPs (24 per cent) plan to maximize their
contribution for 2010.
Thirty-five per cent of all Canadians make regular weekly or bi-weekly
contributions to their RRSPs with Canadians aged 18-34 making up almost
half (47 per cent) of this group.
One-in-three RRSP investors (34 per cent) make regular contributions
through a plan, 45 per cent of whom are Canadians aged 18-34.
Charts related to the 2010 RBC RRSP Poll are available online at www.rbc.com/newsroom/pdf/0119-rrsp.pdf.
Whether Canadians want RRSP and retirement savings advice or to borrow
with confidence, the RBC Advice Centre (www.rbcadvicecentre.com) is updated regularly to reflect current trends and answer the
questions that are top of mind. Interactive tools and calculators
provide customized information covering many facets of personal
These are some of the findings from the RBC 21st Annual RRSP Poll conducted by Ipsos Reid between October 29 and
November 4, 2010. For this survey, a national sample of 1,457 adults
from Ipsos' Canadian online panel were interviewed, of which 184 were
18 to 34-year-olds. 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 1,457 Canadian
respondents, with 100 per cent response rate, would have an estimated
margin of error of ±3 per cent, 19 times out of 20. A weighted
probability sample of 184 18 to 34-year-old respondents, with 100 per
cent response rate, would have an estimated margin of error of ±7.2 per
cent, 19 times out of 20.
Your Future by Design® is RBC's distinctive approach to help clients identify, plan, and
realize their goals for retirement. With the guidance of RBC financial
planners and investment and retirement planners, Your Future by Design
helps clients create a blueprint for a successful lifestyle and
financial plan for retirement based on what is truly important to them
in key areas in life, including family, health, home, lifestyle,
work/business, mind and spirit, and legacy. To find out more about how
RBC can help build a blueprint for the future, visit www.rbc.com/yourfuture or call 1-866-335-4055.
For further information:
Kathy Bevan, RBC, 416 974-2727
Seema Sharma, RBC, 416 974-5606