Canadians relying on RRSPs for retirement income

By Staff | February 5, 2013 | Last updated on February 5, 2013
2 min read

The RRSP contribution deadline is just four weeks away. Have your clients maxed out their contributions?

Likely not. While 65% of Canadians say RRSPs will be their main source of retirement income, 49% don’t plan to contribute this tax season, finds a Scotiabank poll.

Read: OAS change won’t disrupt retirement plans “It is a bit worrying that people might be relying on investments that they have yet to make,” says Mike Henry, senior vice president, retail payment, deposits and lending, Scotiabank. “Even making small contributions every month or year can really help your plans down the line.”

Other top sources of retirement funding include savings (60%), the government (57%), work pension (52%) and selling their homes (22%).

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“As I like to tell my pre-retirement clients, there is no one dollar amount that you’ll need for your retirement as every person’s idea of retirement is unique,” says Bev Moir, senior wealth advisor, retirement planning at ScotiaMcLeod.

She adds, “The key is to start investing early, invest regularly and stay invested. Having a financial plan in place to help you map out what you can do throughout the year is a simple way to stay on track and look forward to making that all-important RRSP contribution worry-free.”

Read: Retirement risks and strategies

Additional findings include:

  • Two-thirds are concerned about not having enough money to support their retirement;
  • 41% think they’ll need less than $300,000 for their ideal retirement;
  • Over the past five years, Canadians say they’ve saved an average of $24,469 (down from the $31,824 they reported saving over a five year period in 2011);
  • 43% are setting aside less than $200 each month (34% in 2011);
  • 33% have pushed back their planned retirement age because of the state of the economy (27% in 2011);
  • 58% have pushed their retirement back by 5 to 9 years; 27% plan to push it back by 10 years or more.

Read: RRSPs can be a tax burden staff


The staff of have been covering news for financial advisors since 1998.