RRSP, TFSA contributions a low priority for Canadians

RRSP, TFSA contributions a low priority for Canadians

RRSP, TFSA contributions a low priority for Canadians

According to a new study commissioned by tax education firm H&R Block, just around one third of Canadians are planning to make contributions to an RRSP or TFSA.

The study, conducted among a nationally representative sample of 1,522 adults who are Angus Reid Forum panelists, found only 33% of Canadians are planning to contribute to an RRSP this year. Meanwhile, only 37% said they had plans to make TFSA contributions. In addition, 47% said they do not contribute to an RRSP or TFSA at all.

“While the number of Canadians contributing to RRSPs has increased since last year, 33 per cent is still very low," said Lisa Gittens, H&R Block Senior Tax Professional. “Canadians should try and take advantage of RRSPs each year where possible to help them achieve their financial goals, maximize refunds and prepare for the future.”

The survey also found demographic differences in contributions. A smaller percentage of women (49%) than men (58%) said they contribute to an RRSP or TFSA. Canadians aged 18-34 were most likely to contribute to a TFSA this year, while those aged 35-54 were most likely to add to their RRSP before the deadline.

Regionally, those from the Atlantic provinces were least likely to contribute to an RRSP or TFSA (42%), while Manitobans were most likely to do so (66%). Looking at RRSP contributions this year, Albertans were the most likely to contribute before the deadline (41%), while Atlantic Canadians were the least likely (23%).


Related stories:
RRSPs: 8 key points you need to know
Over a third of Canadians not making RRSP contributions this year: BMO


More market talk: