Fewer Canadians Planning and Saving for Retirement

Toronto, ON - Fewer Canadians are planning and saving for retirement this year, according to the 20th annual RRSP Poll conducted by Ipsos Reid for RBC. In fact, one in three (32%) Canadians have not started saving for retirement yet, compared to one quarter (24%) who indicate that this was the case in last year's poll. Furthermore, nearly four in ten (36%) haven't done any retirement planning or failed to plan for their retirement, down from 42% last year. The largest decrease in retirement planning is evidenced among those aged 55+, with significantly fewer (53%) doing (or having done) no retirement planning than last year (67%).

The poll found that only one in three (35%) Canadians, overall, have already contributed or intend to contribute to an RRSP for the 2009 tax year, the lowest proportion of intended contribution witnessed in the poll since 2006 (34%) and down from 41% last year.

A majority (54%) of Canadians indicate they have an RRSP, but 36% of those who have one will likely not contribute to it this year. Further, two-in-ten (16%) of those who do indeed plan to contribute indicate that they might not contribute the amount they reached in the 2008 tax year.

Among Canadians who have an RRSP but are scaling back or completely axing their contribution this year, one half (54%) says that their decision is motivated by the current economic conditions. Overall, just 24% of those with an RRSP will contribute the maximum allowable contribution to their RRSP this year, with those aged 18 to 34 being much more likely than middle-aged (19%) or older (22%) Canadians to do so.

In celebration of the 20th anniversary of the RBC Ipsos Reid RRSP poll, respondents were asked to reflect on whether Canadians 20 years ago were better prepared for retirement than Canadians today. Among those who had an opinion, one half (49%) believes Canadians were better prepared 20 years ago, while the other half (46%) believes that we are better prepared today.

The poll revealed many interesting factoids about Canadians and their behaviour when it comes to RRSP and their retirement:

• Nearly one half (45%) of Canadians aged 18-34 have not yet begun saving for retirement, compared to 33% of those aged 35 to 54 and 18% of those aged 55+.
• Women (37%) are more likely than men (27%) to have not started saving for retirement.
• One quarter (25%) of those who intend to contribute to an RRSP will make a one-time contribution. Among these individuals, 35% will do so just prior to the deadline in February of 2010. Others prefer to make regular weekly or bi-weekly contributions (35%), monthly contributions (29%), or a series of contributions whenever they have some money (9%).
• Mutual funds (42%) remain the most popular types of investments that Canadians include in their RRSP contributions, but they have been declining in popularity since 2006 (55%). The next most-frequently used types of investments to include in RRSPs are GICs or term deposits (22%), savings accounts (19%), pension plans (15%), cash (13%), stocks (12%), and bonds (10%).

These are some of the findings of an Ipsos Reid poll conducted between October 21 and November 2, 2009, on behalf of RBC. For this survey, a national sample of 1,457 adults from Ipsos' Canadian online panel was interviewed online. Weighting was then employed to balance demographics and ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. A survey with an unweighted probability sample of this size and a 100% response rate would have an estimated margin of error of +/-2.6 percentage points 19 times out of 20 of what the results would have been had the entire population of adults in Canada been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

For more information on this news release, please contact:
Sean Simpson
Research Manager
Ipsos Reid
Public Affairs
(416) 572-4474
[email protected]

About Ipsos Reid
Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

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