A national survey sponsored by Investors Group has found that 62% of Canadians say they have become less enthusiastic about investing in the stock market over the past 12 months.

But the survey also showed that 73% of Canadians who own RRSPs say they will invest either the same amount (49%) or more (24%) than they did last year. The RRSP investment intention results are almost unchanged from a year ago, indicating that the total amount contributed to RRSPs should be approximately the same this tax year as last.

The lack of enthusiasm about investing in the stock market this year is reflected in the investment products investors are considering. Among survey respondents intending to invest in RRSPs, 21% said they were more likely to invest in low return fixed income products this year than they were last year. By comparison, 13% of survey respondents said they would be more likely to invest in mutual funds this year than last.

The survey results indicated that emotion, rather than expectations of continued stock market volatility, may be driving investors to select interest-paying investments. Canadians’ expectations for stock market performance over the next year were almost identical to last year with 31% expecting markets to go up, 40% anticipating they will stay about the same and only 19% expecting further declines. Canadians expectations regarding retirement age have remained stable. The survey showed nearly four in ten expect to retire between the ages of 55- 60, while one in ten expect to retire before they reach 55.

The survey results are based on a Decima Express national telephone survey conducted with a representative sample of 2000 Canadians (18 years and older) between October 11 and 20. A sample of this size will provide results that can be considered accurate for the population overall to within plus or minus 2.2% 19 times out of 20.