Exit poll shows 37 per cent of Canadians made RRSP contributions for 2007
But 26 per cent of contributors chose to “park” contributions
Winnipeg, MB – March 6th, 2008: The results are in and Investors Group’s second annual RRSP exit poll reveals 37 per cent of eligible Canadians made RRSP contributions during the 2007 tax year – a decrease of five per cent from last year. However, 83 percent of Canadians who made an RRSP contribution invested the same or more than they did a year ago.
“Many Canadians seemed to have taken a ‘wait-and-see’ approach due to current volatility in the stock market,” said Debbie Ammeter, Vice President, Advanced Financial Planning Support, Investors Group. “Delaying your RRSP contribution while you wait for more favourable conditions may seem logical at the time but it actually costs you money in terms of lost investment days.”
The Investors Group poll found 26 per cent of Canadians said they chose to “park” their RRSP contributions this year by investing in short term and typically low risk, low return vehicles such as bonds and money market funds.
Experts agree that “parking” can be a short term solution in some cases but does more harm than good in the long run.
Survey results indicate that of those who tend to park funds, about half park their money for more than a year and half for less than 12 months.
If you have parked funds, the key, Ammeter believes, is to “ensure the parking meter doesn’t expire.”
“Parked funds are like an idling car: they’re in neutral, and not earning the return they should,” says Ammeter. “Left unattended for even for a short period of time, they’re a missed opportunity, one that underscores the importance of working with a financial planner to develop a longer-term investment strategy.”
Canadians indicated that they continue to find working with a financial advisor to be helpful. Fifty-three (53) per cent of Canadians who made an RRSP contribution consulted a financial advisor, and 83 per cent of those individuals said their advisor was helpful including 56 percent who indicated their advisor was “very helpful”.
Regional highlights
Investors Group’s second annual RRSP exit poll indicated that Prairie residents (41 per cent) are most likely, and Maritime residents (26 per cent) least likely, to have made RRSP contributions during the 2007 tax year. As well, Albertans (45 percent) are the most likely Canadians to have “parked” their money in short-term investments, while Quebec residents were the least likely (17 percent).
The Harris Decima data were gathered between March 1st and March 3rd, 2008, through Decima teleVox. Results are based on a sample of 847 Canadians and the corresponding margin of error is 3.4%, 19 times out of 20.
Investors Group, founded in 1926, is a national leader in delivering personalized financial solutions to Canadians through a network of over 4,300 Consultants located throughout Canada. In addition to an exclusive family of mutual funds and other investment vehicles, Investors Group offers a wide range of insurance, securities, mortgage and other financial services. Investors Group is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada’s premier financial services companies with over $118 billion in total assets under management.
| For more information, contact: | ||
|---|---|---|
| Ron Arnst Media Relations (204) 956-3364 ron.arnst@investorsgroup.com |
Teresa Pagnutti Environics Communications (416) 969-2721 tpagnutti@environicspr.com |
Michael Langdon Environics Communications (416) 969-2820 mlangdon@environicspr.com |
