January RRSP campaign indicators show that Desjardins Financial Security’s group retirement savings plan members contributed slightly more to their RRSPs than a year earlier and the anticipated rush toward safer investment vehicles, such as guaranteed investment certificates, is not going to happen, the firm reports.
In spite of the significant number of layoffs announced at the beginning of the year and the fact that many major employers were not able to pay bonuses to their employees for the first time in many years, the percentage of RRSP contributions as compared to total contributions rose to 44% in January, up from 36% in January 2008,.
“Since the markets were performing so poorly at the end of 2008, we were expecting more calls in the first few months of 2009 from unhappy or disappointed clients, but this wasn’t the case. Most of the people who contact us want to be reassured about their investment choices,” said François Desjardins, a team lead in DFS’s group retirement savings customer contact centre. “This year, we’re more educators than service providers to members. Our clients are more interested in knowing our take on the current situation.”
In 2007, the percentage of deposits invested in GICs divided by total deposits invested in RRSPs was 7.4%. In 2008, it was 8%. In January 2008, of the total deposits made, 8.1% were invested in GICs, whereas in January 2009, it was 7.5%.
“Even though 48% of Canadians told us last fall that capital guarantees would now be a very important factor when they choose savings and investment products, the members I see every day have adopted a more rational approach,” indicated Karrina Dusablon, director of DFS’s education centre and global management group retirement savings. “They aren’t necessarily ready to trade higher performance potential for a bit less risk. For many of them, retirement is still very far off and they’re prepared to wait until economic conditions improve.”
Desjardins group RRSPs performing strongly
And total percentage of monies invested into registered GICs fell year-over-year
- By: IE Staff
- February 25, 2009 October 31, 2019
- 11:15