An exit poll reveals a modest decline of six percentage points in the number of Canadian adults who say they made RRSP contributions during the 2008 tax year.

While Investors Group’s third annual RRSP poll results showed 31% of Canadians said they made RRSP contributions this year, it also showed 83% of those who contributed to RRSPs, contributed the same as or more than they did last year.

“Despite this modest decline, RRSP contributors appear to be committed investors,” says Debbie Ammeter, vp, advanced financial planning support. “Most people recognize the RRSP is one of the greatest tax shelters available to them in good times and bad.”

Seventeen per cent of Canadians took advantage of the newly introduced Tax Free Savings Accounts (TFSA) contributing $3,471 on average. (The maximum eligible amount that Canadians can contribute to TFSAs is $5,000.)

“Given that TFSAs are new on the scene, they are being well received,” says Ammeter. “TFSAs and RRSPs are a great one-two punch for tax reduction and income growth. With no tax on investment growth or gains, and no limits or tax on withdrawals, TFSAs can be an important complement to RRSPs.”

“They give Canadians a boost in their ability to save for any financial goal they choose,” she adds.

The poll found 16% of Canadians chose to “park” their RRSP contributions by investing in short-term and typically low-risk vehicles, such as bonds and money market funds, compared with 14% who were asked this question last year. Of those who park funds, 36% say they will park their investment for one year or less, 39% for more than one year.

“Many Canadians may be unsure what to do with their savings at this time, and have a natural tendency to be too risk averse in challenging times,” says Ammeter.

More than half (51%) of Canadians who made an RRSP or TFSA contribution consulted a financial advisor. A majority (76%) found their advisor helpful or very helpful and nearly a quarter (23%) of those individuals decided to contribute more money to their RRSP after speaking with an advisor.

The survey was conducted between March 5 and March. In total, 1,012 interviews were completed. A sample of the same size has a margin of error of 3.1%, 19 times out of 20. The margin of error is larger for specific regions and demographics.

IE