More than half of Canadians will not be contributing to registered retirement savings plans (RRSP) for the 2014 tax year, according to a recent poll conducted for Toronto-based CIBC.
While 54% say they will not make any contributions, 32% expect to add to their retirement savings. Of those who may still make a contribution, only 42% have the money to do so.
It can be a challenge to pull together funds for an RRSP contribution a few weeks before deadline, says Christina Kramer, executive vice president for retail and business banking.
“At this time of year, some families are still focused on paying off their holiday purchases or planning spring getaways,” says Kramer, “which makes pulling an RRSP contribution together at the last minute even more challenging.”
This is a good time for Canadians to start planning for next year’s RRSP season. They can begin by setting up small withdrawals from their accounts to an RRSP throughout the year, according to Kramer. This will prevent the need to come up with a lump sum contribution at the last minute.
People can also be encouraged to track and manage their day-to-day spending and consider delaying some present-day consumption to help them prepare for their future.
Fewer than one-fifth of Canadians, at 16%, have already made their 2014 RRSP contribution and the same number still plan to contribute or make an additional contribution.
The online survey was held between Jan. 21 and 22 and between Feb. 13 and 14. It was conducted among 1,505 randomly selected Canadian adults who are also Angus Reid Forum panelists.