During this month of New Year’s resolutions and various polls indicating Canadians face financial challenges, clients in Quebec provide some good news: they’re saving more in RESPs.
A study commissioned by Universitas Financial, an RESP provider, finds that 48% of Quebec families invested in RESPs in 2018—an increase of three percentage points, the firm says in a release. (RESPs are especially attractive in Quebec because of the province’s education savings incentive introduced in 2007.)
In fact, when asked which investments families, in particular, should prioritize, RESPs ranked second after debt repayment (23% versus 25% of respondents, respectively). RRSPs came in third, at 21%. Among those with children, 33% consider the RESP their top investment priority versus 22% for RRSPs.
Further, when it comes to investment vehicles, the RESP—along with the TFSA—has steadily gained popularity in Quebec relative to the RRSP, finds the study. The RESP is cited as the preferred savings vehicle by 20% of poll respondents overall, up 12 percentage points since 2013.
The TFSA and RRSP are first and second, cited by 49% and 43% of respondents, respectively. This represents a 13-percentage-point increase for the TFSA since 2013, and a five-point increase for the RRSP over the same period.
Another positive finding of the poll is that young people are savers relative to their older peers. Only 11% of those 18 to 34 said they don’t save. That corresponds to 18% of those ages 35 to 54, and 27% of those aged 55 and older.
About the survey: CROP conducted the online survey via a web panel from Nov. 14 to 19, 2018, with a sample of 1,000 Quebec residents. Data from previous years also come from CROP surveys using the same methodology over the same time frame, with survey dates varying slightly from year to year.