Home Breadcrumb caret Industry News Breadcrumb caret Industry More than one-third pulling money from RRSPs And 25% expect they will never pay it back. By Staff | February 25, 2016 | Last updated on February 25, 2016 1 min read Thirty-four percent of Canadians have withdrawn money from their RRSPs before retirement, according to a poll by BMO Financial Group. The study examined the reasons behind Canadians’ decisions to make these withdrawals and their concerns about the consequences. Read: Better ways to invest RRSPs On average, Canadians have withdrawn $15,908 from their RRSPs. One-third have paid back the money, but 25% expect they will never pay it back. Top reasons for making RRSP withdrawals include: buy a home (25%) pay off debt (21%) help pay living expenses (21%) cover costs after an emergency, such as a car accident or house flood (15%) Read: Too few contributing to RRSPs: poll What new tax brackets mean for your clients The study also found that, of those Canadians who have made an RRSP withdrawal, the majority (84%) said they only did so as a last resort. Three quarters said they were very concerned about the potential consequences of this decision, including: loss of retirement income (79%) withholding tax on the cash at the time of withdrawal (77%) not being able to save effectively for retirement (77%) loss of contribution room in the future (62%) Regional Breakdown Region % who have made an RRSP withdrawal Average amount withdrawn from RRSPs % who have paid back the money withdrawn Top reason for making an RRSP withdrawal National 34 $15,908 33 To buy a home Atlantic 40 $8,509 34 To help pay living expenses Quebec 30 $12,622 42 To buy a home Ontario 35 $17,092 30 To help pay living expenses Alberta 32 $16,538 35 To buy a home B.C. 33 $24,100 28 To buy a home Staff The staff of Advisor.ca have been covering news for financial advisors since 1998. Save Stroke 1 Print Group 8 Share LI logo