Fewer Canadians are contributing to their RRSP, finds a BMO survey.

Read: Half of Canadians won’t contribute to RRSPs

Fifty-seven percent made a contribution for the 2014 tax year, lower than 2013 (65%) and 2012 (62%).

Of those who did contribute this year, their reasons for doing so included:

  • it’s the responsible thing to do (43%);
  • for the tax refund (38%);
  • it makes me feel good about myself (33%); and
  • I am worried I will not have enough money saved for retirement (25%).

Of those who did not contribute this year, their reasons included:

  • I do not have enough money (38%, down from 46% in 2013);
  • I have other expenses that take priority (25%, down from 31% in 2013); and
  • I used other types of investments, i.e. TFSA (21%, up from 19% in 2013).

However, the study also finds Canadians contributed an average of $3,737 this year, which is more than what was contributed in the past two years ($3,518 in the 2013 tax year and $3,544 in the 2012 tax year).

Also read:

Prioritize RRSPs Over Debt Repayment

Should clients contribute to RRSP or TFSA?

Originally published on Advisor.ca

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