After a year of economic uncertainty, Canadians remain committed to investing and saving for retirement but they appear to be taking a more cautious approach, new Investors Group research reveals.

According to the eighth annual RRSP Investment Intentions poll, Canadians’ investment intentions remain strong. Two-thirds of those who plan to contribute to their RRSP for the 2009 tax year intend to contribute the same or more than they did last year.

Of the one-quarter of Canadians who opened a Tax-Free Savings Account in 2009, eight-in-ten say they plan to invest the same amount or more in 2010.

Canadians who own or plan to start an RRSP appear to be investing a little more conservatively than in previous years. Forty-four per cent said they would choose what they consider to be safe investments this RRSP season, a slight increase over 40% in 2008, but a sharp increase from only 19% in 2007.

Meanwhile, 28% of pre-retirees say they are investing more cautiously in response to economic uncertainty compared to 21% who said the same a year ago. As well, 38% are staying the course and making no changes compared to 46% in 2008.

“Risk and return go hand in hand, but there’s a difference between playing it safe and not playing at all,” says Jack Courtney, assistant vice president of advanced financial planning at Investors Group. “Too much caution could mean missed opportunities.”

The emotional and financial impact of the economic downturn also appears to have affected when and how Canadians plan to retire — particularly in households hit by job loss.

Concern over economic uncertainty prompted 37% of survey respondants to say they will delay retirement, an increase from 28% who responded similarly a year ago.

The group taking the most guarded approach to their retirement savings and also planning to work the longest is the one-in-six Canadians who say that a financially-contributing member of their household has lost a job in 2009. More than half of those impacted by job loss say they will retire later and three-in-10 expect they will have to work after they retire.

“Many Canadians may have had their confidence shaken by events of the past year, but investing in the stock market remains an important part of preparing for retirement,” says Courtney. “Making a long-term plan, sticking to it, and adjusting when necessary, are all essential.”

The survey data was gathered through teleVox, Harris/Decima’s national telephone omnibus survey. These data were gathered between October 15 and October 26 2009 for just over 2,000 completes. A sample of the same size has a margin of error of 2.2%, 19 times out of 20.

IE