Majority (60%) of RRSP Investors Not Worried About Market Fluctuations

Toronto, ON - It appears that most Canadians are remaining calm during the recent bouts of market volatility, with the results of a new Ipsos Reid poll conducted on behalf of RBC revealing that a majority (60%) of RRSP investors are not worried about the impact of market fluctuations on the value of their RRSPs. But among those four in ten (40%) who are concerned, the majority (54%) have not made any changes to their investments to address their concerns.

The data also reveal that nearly seven in ten (68%) Canadians hold RRSPs, and roughly one half (49%) indicate that they already have or plan to contribute to their RRSP for the 2007 tax year. However, only three in ten (30%) RRSP holders say that they will maximize their RRSP contribution for this tax year.

The average contribution among individuals who have already or are planning to contribute to their RRSP is $5,967. British Columbians appear to be making the largest contributions, on average ($7,928), while residents of Quebec appear to be making the smallest contributions, on average ($4,281). Among individuals with RRSPs, the average value of that investment is $72,481.

But Canadians are not uniform in the manner by which they contribute to their RRSPs. One third (33%) of RRSP holders indicate that they make their contributions through a regular contribution plan, such as a monthly or quarterly transfer to their investments. However, some RRSP holders seem to prefer a last minute approach, with a similar proportion (32%) of those who plan to make a contribution but have not yet done so saying that they will make a lump some contribution just before the February 29th, 2008 deadline.

Focusing specifically on where Canadians are getting their advice on investing, six in ten (58%) indicate that they use a professional financial advisor who gives them advice on their RRSPs and other investments, with older Canadians (aged fifty five and over) being the most likely (66%) to indicate that this is the case. However, one in eight (13%) Canadians say that they will be contributing to their RRSP through a discount brokerage firm.

The results of the survey also show that mutual funds are the most popular type of RRSP investment, with (55%) of Canadians indicating that they plan on or have already invested in mutual funds for their RRSP contribution this year. Other types of investments into which many Canadians are buying include pension plans (31%), GIC term deposits (27%), savings accounts (25%), and stocks (21%).

These are the findings of an Ipsos Reid poll conducted on behalf of RBC from Oct 23 to Nov 5, 2007. For the survey, a representative randomly selected sample of 1200 adult Canadians was interviewed by telephone. With a sample of this size, the results are considered accurate to within 177 2.8 percentage points, 19 times out of 20, of what they would have been had the entire adult population been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were weighted to ensure that the sample's regional and age/sex composition reflects that of the actual Canadian population according to Census data.

For more information on this news release, please contact: John Wright Senior Vice President Ipsos Reid Public Affairs (416) 324-2002 [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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