News & Resources

Scotiabank: Fewer Canadians Plan to Make RSP Contributions This Year

Jan. 6, 2014
1 mins
Modern seniors working at home

Only 3 in 10 Canadians plan to contribute to an RSP plan this year according to a Scotiabank survey.

This is an 8% decrease from the 39% who made contributions both in 2012 and 2011. Additionally, Scotiabank's Annual Investment Poll reports that three-quarters of respondents (74%) who hold RSPs and consider contributing more, say lack of affordability is top reason for not increasing payment amounts, compared to 84% in 2012.

The study also shows that 40% of Canadian RSP holders have withdrawn funds from their plans, up 4% from 2012. The top reason offered for making withdrawals is to take advantage of the Home Buyers' Plan to buy (or build) a first home (16% vs. 15% in 2012). Covering day-to-day living expenses (8% vs. 5% in 2012) is the next most common reason followed by paying down debt (8% vs. 6% in 2012) and doing home renovations (5% vs. 3% in 2012).

"With the new year underway and the RSP contribution deadline (March 3) less than two months away, we want to encourage Canadians to meet with a financial advisor," says Mike Henry, Senior Vice President of Retail Payments, Deposits and Lending at Scotiabank.

Henry adds: "RSPs continue to be an important and tax-effective way to maximize retirement savings. If affordability is an issue, a financial advisor can help identify ways to make that all-important contribution, big or small, as well as develop a financial plan to help achieve retirement goals."

Latest life insurance articles

10 Myths About Life Insurance Busted – Some May Surprise You
You may be young with no kids and no mortgage. Life insurance is for someone older, who has dependents right? Wrong. Let’s debunk life insurance myths and learn why everyone needs some form of coverage.
Will a Life Insurance Policy Cover Death Due to COVID-19?
Demand for life insurance may be on the rise during the pandemic as more Canadians consider buying a policy or reviewing ones they already have. If you’re thinking of applying for a policy, here are a few things to keep in mind.
How Does Vaping and e-Cigarettes Affect Life Insurance?
Many insurers may classify vaping in the same way they do smoking. If you smoke or vape, you can still qualify for a life insurance premium, but in all likelihood, you will pay a higher rate than someone who does not.