A new survey from RBC Financial Group shows the average intended RRSP contribution for the 2004 taxation year is almost double what it was 12 years ago.
This 2004 average is $5,560, while 12 years ago it was $2,866.
According to the survey, which was released today, 65% of Canadians now have RRSPs. This is an increase over the last two years — 61% in 2003 and 57% in 2002.
Thirty-one per cent of those with RRSPs have already contributed all or some of what they had planned for 2004. Mutual funds were the most popular investment choice, at 52%, for those who have or plan to contribute.
Investing in individual stocks increased significantly to 27%, compared to last year’s 19%.
The survey also found that more people than ever before are using advisors to help maximize returns, with 73% now using financial advisors for all or some of their investment decisions. This is up from 67% in 2002 and 2003. Additionally, of the 52% of RRSP holders who have reviewed their portfolio over the last year, 41% did so with a financial advisor.
“Using an advisor is often part of a smart investing strategy,” said Matt Varey, senior vp and director, RBC Investments, in a release. “Advisors can play an important role for the 48% of RRSP holders who need help understanding the different investment choices available to them.”
The number of people planning to contribute to their RRSP this year slipped to 47% from 49% last year, but is up from 43% in 2002. In 1993, only 35% planned to contribute to RRSPs.
The average self reported total market value for personal RRSPs is $64,600 in 2004, up from $58,079 in 2003. The reason given the most often for contributing was retirement planning (48%), followed by tax deductions (40%).
The RBC Financial Group/Ipsos-Reid poll was conducted between November 4 and November 23, 2004. For the survey, a representative randomly selected sample of 1,201 adult Canadians was interviewed by telephone. With a sample of this size, the results are considered accurate to within (+/-) 2.8 percentage points, 19 times out of 20, of what they would have been had the entire adult Canadian population been polled. The margin of error will be larger within regions and for other sub- groupings of the survey.