Eighty-five per cent of people aged 18-34 hold RSPs, compared with an average of 87% of all age groups, according to the 2008 TD Waterhouse Investor Poll.

Even more, 89% indicate they have made, or plan to make, an RSP contribution for the 2007 taxation year — the highest percentage of all age categories and considerably higher than the 68% average.

Among poll respondents aged 18-34, 89% have made or plan to make an RSP contribution. As well, 60% of all investors made their first contribution under the age of 35 and 43% made it under the age of 30.

Twenty-seven per cent of investors in the 18-34 age group believe that they will be drawing on their RSP or pension income for 25 or more years, compared with an average of 28% for all age groups. One-quarter of 18-34 year olds (25%) say they will be doing so for 20 to 24 years (28% for all age groups).

While investors under age 35 are thinking enough about their retirement to have an RSP and regularly contribute to it, they are not doing much more than that. Only 9% have a formal, written retirement plan — a lower incidence than the already low average for all age groups of 14%. Further, just one-in-five (20%) have tried to calculate how much money they will need in retirement, compared with an average of 31% for all age groups.

“It’s very encouraging to see that so many people under 35 have RSPs,” says Patricia Lovett-Reid, senior vp, TD Waterhouse. “We’re seeing a trend towards young people taking control of their future, saving for retirement, getting into the housing market and so on. I would still like to see them become more involved on the planning side because that is essential to achieving long-term financial goals. But having and contributing regularly to an RSP is a great start.”

Young people are pragmatic about how much money they will need for a comfortable retirement. The average amount given by 18-34 year-olds is $933,000, or 28% more than the average for all age groups ($727,000). However, they are overly optimistic about reaching retirement debt-free, especially if debt loads for young families continue to grow. Three-quarters (75%) of people aged 18-34 currently expect to retire debt-free.

The findings are part of an on-line survey conducted by TNS Canada Facts from December 14-27, 2007 with 1,077 Canadian investors across Canada between the ages of 18 and 69.