Exit poll shows slight decline in number of Canadians making RRSP contributions
Uptake on Tax Free Savings Accounts slow-moving but contributions are healthy
WINNIPEG, MB – March 10, 2009 – Investors Group’s third annual RRSP exit poll reveals a modest decline of six percentage points in the number of Canadian adults who say they made RRSP contributions during the 2008 tax year. While the poll results showed 31 per cent of Canadians said they made RRSP contributions this year, it also showed 83 per cent of those who contributed to RRSPs, contributed the same as or more than they did last year.
“Despite this modest decline, RRSP contributors appear to be committed investors,” said Debbie Ammeter, Vice President, Advanced Financial Planning Support, Investors Group. “Most people recognize the RRSP is one of the greatest tax shelters available to them in good times and bad.”
Seventeen per cent of Canadians took advantage of the newly introduced Tax Free Savings Accounts (TFSA) contributing $3,471 on average. (The maximum eligible amount that Canadians can contribute to TFSAs is $5,000.)
“Given that TFSAs are new on the scene, they are being well received,” said Ammeter. “TFSAs and RRSPs are a great one-two punch for tax reduction and income growth. With no tax on investment growth or gains, and no limits or tax on withdrawals, TFSAs can be an important complement to RRSPs.”
“They give Canadians a boost in their ability to save for any financial goal they choose,” she added.
The Investors Group poll found 16 per cent of Canadians chose to “park” their RRSP contributions by investing in short-term and typically low-risk vehicles, such as bonds and money market funds, compared with 14 per cent who were asked this question last year. Of those who park funds, 36 per cent say they will park their investment for one year or less, 39 per cent for more than one year.
“Many Canadians may be unsure what to do with their savings at this time, and have a natural tendency to be too risk averse in challenging times,” said Ammeter. “But the basics of investment planning remain constant despite circumstances. Having a long-term plan – and sticking to it – is a cardinal rule of sound planning.”
More than half (51 per cent) of Canadians who made an RRSP or TFSA contribution consulted a financial advisor. A majority (76 per cent) found their advisor helpful or very helpful and nearly a quarter (23 per cent) of those individuals decided to contribute more money to their RRSP after speaking with an advisor.
About the Survey Methodology: These data were collected through teleVox, Harris/Decima's national telephone omnibus survey. These data were gathered between March 5th and March 8th 2009. In total, 1,012 interviews were completed. A sample of the same size has a margin of error of 3.1%, 19 times out of 20. The margin of error is larger for specific regions and demographics.
Investors Group, founded in 1926, is a national leader in delivering personalized financial solutions to Canadians through a network of approximately 4,500 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 $94 billion in total assets under management.
| Media Contact: | |
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| Ron Arnst Media Relations (204) 956-3364 ron.arnst@investorsgroup.com |
Teresa Pagnutti or Meredith Adolph |
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