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BMO's Fourth Annual RRSP Study: More Than a Third of Canadians Have Already Contributed to Their RRSP this Year

- Among those who have already contributed, 64 per cent have contributed at least $2,000 and 40 per cent $5,000

TORONTO, ONTARIO -- (Marketwired) -- 01/10/14 -- BMO Financial Group today announced the results of its fourth annual national Registered Retirement Savings Plan (RRSP) study, which showed that many Canadians are getting a head start on saving for retirement this year. More than one-third (35 per cent) of Canadians reported that they have already contributed to an RRSP before the March 3rd, 2014 deadline. This is up five per cent from this time last year.

Additionally, according to the study:

--  Sixty-four per cent of those who have already made a contribution have
    contributed at least $2,000 to their RRSP and 40 per cent have put in at
    least $5,000.
--  Forty-three per cent of Canadians reported that they will make a
    contribution to their RRSP by the March 3rd deadline. This is down from
    the 50 per cent who made a contribution last year.
--  Almost two-thirds (64 per cent) of Canadians have an RRSP, compared to
    67 per cent this time last year.
--  One-third reported that they usually contribute the maximum amount to
    their RRSPs.
--  Last year Canadians contributed an average of $3,544 to their RRSPs.

"It's reassuring to see that many Canadians are being proactive by contributing to their RRSPs well ahead of the deadline. However, according to Statistics Canada the total unused RRSP contribution amount is estimated to exceed $1 trillion by 2018," said Caroline Dabu, Vice President and Head, BMO Wealth Planning Group. "So we encourage everyone to contribute and contribute as early as possible to avoid the difficulties of having to come up with a large lump sum at the last minute."

Ms. Dabu added that using a Continuous Savings Plan (CSP) to make smaller and regular RRSP contributions throughout the year can help alleviate some stress leading up to the deadline. A CSP regularly and automatically withdraws a specific amount of money from an individual's bank account and invests it directly into his or her RRSP. It eases the cost of investing away from one annual deposit and helps increase savings.

RRSP Investing Hurdles

The study also examined the reasons why Canadians are not planning to make a contribution to an RRSP this year. These include:

--  Not having enough money to make a contribution (37 per cent)
--  Having other expenses which take precedence (33 per cent)
--  Prioritizing other investments (11 per cent)

"It can be difficult to balance all of your financial priorities, whether it is paying down your mortgage, saving for your child's education or putting money aside for your retirement," said Ms. Dabu. "A financial plan can help you map out all of your financial commitments to help you prioritize. Also, a financial professional can help you understand your options, offer checkpoints to follow your progress, adjust your plan as your circumstances change and work with you to ensure you stay on track for success."

Regional Breakdown:

Region             % who have    % who expect  % with an RRSP Average amount
                 already made a  to contribute                  contributed
                  contribution    to an RRSP                   last year ($)
                   before the     before the
                  2013 deadline  2013 deadline
National               35             43             64            3,544
Atlantic               30             35             60            3,955
Quebec                 29             41             53            3,049
Ontario                41             46             68            3,592
Prairies               41             49             81            3,811
Alberta                34             45             65            4,462
B.C.                   31             40             69            3,173

For more information on saving for retirement, please visit

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

The survey was conducted by Pollara with an online sample of 1,003 Canadians 18 years of age and over, between November 18th and 22nd, 2013.

Media contacts:
Amanda Robinson, Toronto
[email protected]

Valerie Doucet, Montreal
[email protected]

Laurie Grant, Vancouver
[email protected]

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