Welcome!

News Feed Item

CIBC Poll: Most Canadians scrambling to find the money to make their planned RRSP contributions

Less than one-third of Canadians are putting money away regularly, leaving them short of funds as the RRSP deadline approaches

TORONTO, Feb. 13, 2014 /CNW/ - While 56 per cent of Canadians say they plan to make a contribution to their Registered Retirement Savings Plan or Tax-Free Savings Account in 2014, nearly two-thirds of them have not set aside the money according to a new poll from CIBC (TSX: CM) (NYSE: CM) conducted by Harris/Decima. This lack of savings has many scrambling to crunch 12 months worth of retirement savings into just a few weeks before the RRSP deadline.

Key findings of the poll include:

  • 56 per cent of Canadians say they will contribute to an RRSP, TFSA, or both in 2014;
  • However, 64 per cent of those planning to contribute say they do not have enough money set aside for their planned contribution;
  • The gap comes from a lack of regular savings as only 31 per cent have a regular investment plan for retirement, where money is put away automatically throughout the year.

"While it is encouraging that so many Canadians are planning to invest in their retirement this year, most do not yet have the money set aside to make the contribution they want to," says Christina Kramer, Executive Vice President, Retail and Business Banking, CIBC. "With the 2013 RRSP contribution deadline approaching, it can be a scramble to find the money to make a contribution at a time when some families are still paying off holiday bills or trying to manage other expenses."

The poll results underscore the importance of contributing regularly throughout the year, whether it's for an RRSP, TSFA or both. Making your contributions early helps to ensure that you meet your annual investment goal, and lets you take advantage of one full year of tax free or tax deferred growth on the funds you invest.

Good intentions, but not enough action

Six in 10 Canadians (58 per cent) say that saving regularly will make it possible for them to retire in their 60s, but less than a third of them (31 per cent) follow through with a regular investment plan, pointing to a gap between intention and action.

"This gap highlights the need to build a realistic financial plan," says Ms. Kramer. "While the intentions of Canadians are in the right place, history tells us that without a regular investment plan, many will not be able to follow through and make the contribution that will help them achieve their long term goals."

Recent data from Statistics Canada (2011) shows that only 24 per cent of eligible tax filers contributed to an RRSP.

50-somethings no better off despite having fewer years to retirement

Canadians between the ages of 45-54 - a demographic that is typically more focused on building up their retirement savings - were no better off than those much younger when it came to regular savings. Just 34 per cent of them said they had set up a regular investment plan - the same percentage as those 20 years younger, aged 25-34.

"Whatever your age, it's never too late to start saving for retirement,'' says Ms. Kramer. "It is important to make sure you don't overlook retirement contributions to focus only on short-term financial priorities, such as paying off debt or saving for a home. The right financial plan can help you balance all of these goals."

Advice on Maximizing Retirement Savings

  • Talk to an Advisor - Meet with an advisor to understand your options, and work with them to develop a plan that can help you in managing multiple financial priorities and staying on track over the long term.
  • Contribute regularly - Set up a regular investment plan to automatically withdraw smaller amounts throughout the year, rather than trying to find the funds for a large lump payment at the deadline.
  • Track and manage day-to-day spending - Take a hard look at your budget; saving for retirement may mean delaying some consumption from the present to the future.

KEY POLL FINDINGS

Percentage of Canadians who intend to contribute to either an RRSP, TFSA, or both in 2014, by region:

National  56%
Atlantic Canada 49%
Quebec 54%
Ontario 56%
Manitoba and Saskatchewan 55%
Alberta 60%
British Columbia 59%

Percentage of Canadians who intend to contribute to either an RRSP, TFSA, or both in 2014, by age:

National 56%
18-24 43%
25-34 58%
35-44 66%
45-54 61%
55-64 55%
65+ 42%

Percentage of Canadians who have a regular investment plan to automatically save for retirement, by region:

National  31%
Atlantic Canada 28%
Quebec 30%
Ontario 33%
Manitoba and Saskatchewan 30%
Alberta 30%
British Columbia 26%

Percentage of Canadians who have a regular investment plan to automatically save for retirement, by age:

National 31%
18-24 25%
25-34 34%
35-44 41%
45-54 34%
55-64 30%
65+ 13%

Each week, Harris/Decima interviews approximately 1,000 Canadians through teleVox, the company's national telephone omnibus survey. These results were gathered from a sample of 1,734 RRSP-eligible Canadians between December 5 and 16, 2013.  A sample of this size has a margin of error of +/-2.35%, 19 times out of 20.

CIBC is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, and has offices in the United States and around the world. You can find other news releases and information about CIBC in our Media Centre on our corporate website at www.cibc.com.

SOURCE CIBC

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
Transforming cloud-based data into a reportable format can be a very expensive, time-intensive and complex operation. As a SaaS platform with more than 30 million global users, Cornerstone OnDemand’s challenge was to create a scalable solution that would improve the time it took customers to access their user data. Our Real-Time Data Warehouse (RTDW) process vastly reduced data time-to-availability from 24 hours to just 10 minutes. In his session at 21st Cloud Expo, Mark Goldin, Chief Technolo...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
In the fast-paced advances and popularity in cloud technology, one of the most critical factors revolves around concerns for security of your critical data. How to assure both your company and your customers they can confidently trust and utilize your cloud environment is most often top on the list. There is a method to evaluating and providing security that exceeds conventional modes of protecting data both within the cloud as well externally on mobile and other devices. With the public failure...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, will provide a fun and simple way to introduce Machine Leaning to anyone and everyone. Together we will solve a machine learning problem and find an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intellige...