The RRSP contribution deadline is looming. Yet only 31% of Canadians intend to top up their plans this year, finds a Scotiabank poll.
That’s a drop from 39% in both 2012 and 2011, with most Canadians (74%) admitting they can’t afford to contribute funds.
Most alarming is nearly half of those with registered plans across the country (40%) have withdrawn funds this past year, up 4% from 2012. Most people did so to buy a home (16%), but others used the money to cover living expenses (8%) and pay down debt (8%).
If affordability is an issue for those who want to contribute, advisors should help people come with solutions so they can benefit from tax savings and retirement planning, says Mike Henry, a senior vice president at Scotiabank. He suggests planners discuss pre-authorized payment plans and the potential benefits of borrowing to invest.