New data shows that nearly half of Canadians expect to contribute to a registered retirement savings plan (RRSP) this year, despite higher interest rates and elevated inflation. 

Survey data from Edward Jones Canada, released Tuesday, found that 49 per cent of Canadians still believe they will contribute to their RRSP this year amid uncertain economic conditions. However, only 21 per cent of respondents indicated they plan to contribute their maximum amount. 

“It’s clear that amid the current economic climate, Canadians prefer to stick to what they know by contributing to their RRSP this year,” Julie Petrera, a senior strategist at Edward Jones, said in a press release Tuesday. 

Feb. 29 is the deadline for investors looking to deduct RRSP contributions from their 2023 taxable income. 

The survey also found that 58 per cent of respondents between the ages of 18 and 34 planned to contribute to their RRSP. This number was slightly higher for those between 35 and 54, with 62 per cent indicating plans for an RRSP contribution. 

“RRSPs are a valuable retirement savings tool. In fact, they can be used for saving for more than just retirement,” Petrera said.

“I find it promising that a high portion of young Canadians are making choices to save for long-term goals and trust they fully understand the benefits of RRSPs, which can be used for a first home purchase, returning to school, and retirement.” 

The survey also found that 10 per cent of Canadians have plans to invest in something other than an RRSP, like a tax-free savings account (TFSA) or a first home savings account (FHSA). 

Methodology:

Survey data was conducted through an online poll between Jan. 24 and 26. Answers were collected from 1,699 Canadians over the age of 18.