Welcome!

News Feed Item

REPEAT-BMO's Annual RRSP Study: Increasing Number of Canadians Buying Into RRSPs

- Two-thirds of Canadians say they have an RRSP, up six per cent from 2011

TORONTO, ONTARIO -- (Marketwire) -- 12/08/12 -- BMO Financial Group today announced the results of its third annual national Registered Retirement Savings Plan (RRSP) study, which shows an increasing number of Canadians are taking the important step of investing in RRSPs to help support themselves in their retirement. However, the study also found that most Canadians are not maxing out their annual contribution.

According to the study:


--  Sixty-seven per cent of Canadians have an RRSP, up six per cent from
    2011. 
--  Of those who do not have an RRSP, half (49 per cent) say they intend to
    open one within the next five years. 
--  Almost three-quarters (72 per cent) of Canadians expect to contribute
    the same amount or more to their RRSP than they did last year. 
--  The majority of Canadians with an RRSP (74 per cent) has already made or
    plans to make a contribution towards an RRSP before the 2012 deadline;
    last year at the same time, 69 per cent of Canadians planned to make or
    had made a contribution. 
--  Last year's average contribution amount was $4,670.

However, the study also found that many Canadians are worried about the health of their RRSPs given the volatility that has characterized financial markets over the last two years; 68 per cent report that they are concerned about the performance of their retirement savings.

"It's encouraging that a growing number of Canadians understand the important role an RRSP can play in preparing for retirement," said Marlena Pospiech, Senior Manager, BMO Wealth Planning Group, BMO Financial Group. "But it's sobering that so many are worried about the performance of their investments within their RRSP. During times of market volatility, it's critical that Canadians have a financial plan that includes a retirement component and that they review their investments regularly and seek out the assistance of a financial professional if needed."

Ms. Pospiech added that it is also important that people choose investments that match their current age, life stage and risk tolerance. For example, BMO SelectClass® Portfolios(i) come in four portfolios options designed to align with different risk profiles, so whether an investor is conservative, bold or somewhere in between, there is a portfolio tailored to them. This type of portfolio design can give investors confidence that they are on track to achieving their long-term goals- such as being financially prepared for retirement.

Are Canadians Maxing Out Their RRSPs?

The study also examined Canadians' awareness around RRSP contribution limits; the results showed that only one-third are aware of their annual contribution limit while more than 60 per cent either rarely or never contribute the maximum amount to which they are entitled. Only 13 per cent report that they hit the maximum each and every year. As of 2011, the total unused RRSP contribution amount stood at about $500 billion; the figure is estimated to exceed $1 trillion by 2018.

Regional Breakdown- BMO's Third Annual RRSP Study


----------------------------------------------------------------------------
                                   Total   ATL    QC    ON MB/SK    AB    BC
----------------------------------------------------------------------------
Percentage who have an RRSP                                                 
----------------------------------------------------------------------------
2012                                  67    64    73    65    65    69    65
----------------------------------------------------------------------------
2011                                  61    48    61    63    70    66    51
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Percentage who are planning on                                              
 making a contribution to their                                             
 RRSP                                                                       
----------------------------------------------------------------------------
2012                                  74    79    66    80    61    78    67
----------------------------------------------------------------------------
2011                                  68    63    64    73    71    68    68
----------------------------------------------------------------------------

For more information on saving for retirement, please visit www.bmo.com/retirement.

Get the latest BMO press releases via Twitter by following @BMOmedia.

The survey results cited in this release are from online interviews with a random sample of 1,000 Canadians 18 years of age and older, conducted between November 23rd and November 27th, 2012. A probability sample of this size would yield results accurate to +/- 3.1 per cent, 19 times out of 20.

(i)BMO SelectClass Portfolios are offered by BMO Investments Inc., a financial services firm and separate legal entity from Bank of Montreal. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus of the mutual fund before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Contacts:
Media contacts:
Amanda Robinson, Toronto
416-867-3996
[email protected]

Valerie Doucet, Montreal
514-877-8224
[email protected]

Laurie Grant, Vancouver
604-665-7596
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Phil Hombledal, Solution Architect at CollabNet, discussed how customers are able to achieve a level of transparency that e...
"Coalfire is a cyber-risk, security and compliance assessment and advisory services firm. We do a lot of work with the cloud service provider community," explained Ryan McGowan, Vice President, Sales (West) at Coalfire Systems, Inc., in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...