More young Canadians holding RRSPs
Young Canadians (between the ages of 18 and 34) are planning more for their futures and today, 43 percent are holding RRSPs. The 22ndAnnual RBC RRSP Poll examined how this demographic is planning for their future, and it’s looking decent.
Last year, the number of young Canadians who had RRSPs was at its lowest point in almost a decade, with just 39 percent holding the retirement vehicle. Retirement savings is now at fourth spot in the list of financial priorities for this age group, compared to its seventh place position last year.
However, in the 2011 tax year, fewer younger Canadians say they’re going to contribute the maximum to their plan, with only 16 percent saying they’ll max out. Last tax year, this demographic was the most likely age group to maximize their contribution (33 percent.) For all Canadians, 25 percent plan to contribute the maximum.
The RBC RRSP poll indicates that financial priorities are shifting among younger Canadians. Compared to 2010, more young Canadians are focusing on home ownership (49 per cent compared to 44 per cent) and retirement savings (35 per cent compared to 26 per cent). A lower priority is being placed on regular payments to reduce or eliminate debt (48 per cent compared to 56 per cent) and general savings for a rainy day (39 per cent compared to 45 per cent).
- 22ND Annual RBC RRSP Poll: RRSP ownership in 2011 (CNW Group/RBC) (Click to enlarge)
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RRSP Fast Facts for the 2011 Tax Year |
Young Canadians |
Average |
| Have an RRSP | 43 per cent | 60 per cent |
| Average contribution | $3,191 | $4,715 |
| No withdrawals from RRSP in the past year | 88 per cent | 80 per cent |
| Contribute through a regular contribution plan | 48 per cent | 35 per cent |
| Plan to make the maximum allowable contribution | 16 per cent | 25 per cent |
| Contributing the same amount as last year | 41 per cent | 52 per cent |
| Contributing more than last year | 35 per cent | 27 per cent |
