RRSP contribution levels among Canadians have remained steady from last year, finds a BMO survey.
The bank says 53% of Canadians contributed to their RRSP before the February 29 deadline, down from 57% this time last year and 65% in 2014.
While the number of Canadians who contributed is down slightly from last year, the amount that Canadians have contributed has increased. On average, Canadians contributed $4,117 this year, compared to $3,737 in 2015 and $3,518 in 2014.
Of the people surveyed by BMO, 42% reported that market volatility played no role while 37% stated that it did; 19% indicated that market volatility caused them to contribute more, while 18% said they contributed less.
The survey didn’t address what role 2015’s $10,000 TFSA contribution allowance had in changing how much people contributed to their registered plans.
“Conventional wisdom says if your tax rate when you invest the money is higher than when you take it out, you’re better off within an RRSP. … But this advice assumes tax-neutral contributions.”
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