Two-thirds of Canadians may not take advantage of the raised RRSP contribution age-limit, according to a recent survey conducted by Decima Research on behalf of Edward Jones.

The research suggests tat only 30% of Canadians polled indicate they will likely delay withdrawing funds to age 71 as a result of changes proposed in last months budget announcement.

“It is discouraging that so few Canadians plan to use the extra years available to continue to grow their savings,” says Mary Chan, principal, mutual fund marketing for Edward Jones. “Our suspicion is that many Canadians don’t understand the benefits of this budget announcement.”

For example, if someone with a $250,000 portfolio takes advantage of the two extra years of saving, they would acquire an additional $36,225, assuming a rate of return of 7%.

In his March 19 federal budget, federal finance minister Jim Flaherty announced that, effective immediately, the age limit at which RRSPs, Registered Pension Plans and Deferred Profit Sharing Plans must be converted either into a RRIF or an annuity has been increased to 71 from 69.

The survey revealed that self-employed Canadians were the most ready to delay their withdrawals, with 41% willing to wait to dip into their retirement nest egg compared to 28% of company employed people.

“Self-employed people don’t have formal company pensions so they may have stronger concerns about retirement income. They may also lack a succession strategy and may plan to work much longer than those Canadians who work for large established firms,” says Chan.

Respondents in British Columbia are the group most likely to wait to withdraw funds at 39%, while those in Alberta and Quebec are the least likely to at 23% each. Only a quarter of those in Atlantic Canada plan to delay, while just over one-third of Canadians in Ontario, Manitoba and Saskatchewan will postpone.

“With people retiring later and living longer, seniors should not have to withdraw funds if they don’t need to. With the announced federal changes these folks have an opportunity to let their money grow in a tax-sheltered account,” says Chan.