Fewer Canadians plan to contribute to registered retirement savings plans this year compared to last year (46 per cent versus 50 per cent), though the average contribution has increased to $5,088 from $3,984, reveals a BMO study.

Canadians’ reasons for contributing are no surprise, but reasons for not contributing raise more questions than they answer. For instance, those contributing this year predictably said they want to have enough for retirement (40 per cent), to receive a tax refund (39 per cent) or to achieve an ideal retirement lifestyle (35 per cent).

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Those who aren’t contributing say they don’t have the money (42 per cent), or that other expenses or investments take priority over an RRSP (28 per cent and 10 per cent, respectively).

Whether those reasons are valid or whether they highlight Canadians’ need for financial advice isn’t clear.

Here’s the breakdown across the country:

This article was originally published on Benefits Canada‘s companion site, Advisor.ca

Copyright © 2021 Transcontinental Media G.P. Originally published on benefitscanada.com

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John Sarazin:

They have all but phased out Government led retirement vehicles including Canada Savings Bonds leading us to wonder what their long term vision exactly is. Hopefully common sense will prevail in the case of RRSP’s they will bolster it by offering folks the option to exercise the Home Buyers Plan more than once in their lifetimes. Won’t hold my breath.

Tuesday, August 01 at 11:14 am |

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