Compared to last year, a sense of optimism and confidence is in the air as Canadians enter RRSP season, suggests survey results released Thursday by Bank of Montreal. Tempering this positive news is the fact that significant numbers of RSP holders do not fully know what investments they hold in their retirement portfolios.

The survey found the vast majority (79%) of respondents either feel the same or are more optimistic when it comes to the financial markets when compared to last year.

Two-thirds of respondents believe they are on the right path when it comes to saving for their retirement, while more than two-thirds reported holding an RRSP.

However, a disturbing 70% are not fully familiar with the mix of investments in their RRSP accounts — with only 20% of women and 43% of men reporting being fully familiar with what they hold.

“Canadians are upbeat about the markets and their ability to save for retirement this year,” said Tina Di Vito, head, BMO Retirement Institute, in a release.

“However, the survey also indicates that there is a real need for Canadians to become more familiar with what they hold within their RRSP portfolios in order to balance risk and deal with the inevitable ups and downs of the markets.”

The survey also found that, with RRSP season approaching, almost half of Canadians surveyed (48%) have either already made a contribution or plan to this year. Of this number, 80% have or are planning on contributing the same amount or more than last year; according to Statistics Canada, the median RSP contribution last year was $2,680. Conversely, one-third of Canadians (33%) are not planning to make a contribution this year.

Other key findings include:

> 59% of survey respondents make RRSP contributions throughout the year, as opposed to making one lump sum payment (41%); and

> Four in 10 Canadians agree that borrowing money for an RRSP contribution is a good investment strategy. Men are more likely to disagree with this approach (35%) than women (23%).

The online survey was conducted by Harris/Decima among 1,002 Canadian adults, between November 15-24. Results were weighted using the most recent census data to ensure responses were nationally representative.

IE