The majority of Canadians (60%) plan to invest in their retirements this year, but new CIBC data suggests they won’t follow through.
Key findings include:
- Most Canadians (60%) say they’ll contribute to an RRSP, TFSA or both in 2013; about a third (28%) plan to add to both, while 19% will focus on RRSPs and 13% will contribute solely to TFSAs
- Another 31% don’t plan to save this year, compared to only 28% in 2012
- Among those who didn’t save last year, the top reason given was lack of funds (35%)
“So many eligible Canadians plan to contribute to their retirement funds this year, [but] we know from previous years that only 26% of eligible tax filers actually made a contribution to their RRSPs, says Jamie Golombek, managing director of tax & estate planning for CIBC.
He adds, “The solution [to this issue] may come from having a hard look at budgets. Saving for retirement is really about delaying some consumption from the present to the future.”
As such, Golombek advises people weigh their debt repayment and retirement goals equally. He adds advisors can help their clients restructure debts and review monthly cash flows.
“Making smaller, regular contributions throughout the year is much easier than making one large lump-sum contribution to your RRSP,” says Golombek, so set up regular, automatic payments.
The survey finds people in Manitoba and Alberta have the highest resolve to save (65%), with Manitoba’s percentage of potential savers rising 13% over last year.
Respondents in Quebec were the least likely to reach their goals, with only 53% intending to grow their savings, a drop of 2% over 2012.