This is the deadline for contributing to an RRSP for 2021 and, there are signs that more of us are taking advantage of this tax-sheltered retirement savings tool.
A study by BMO Bank of Montreal has revealed that the average Canadian plans to put $6,800 into their RRSP this year. That is an increase of 47 per cent over last year and a sign that retirement planning is taking precedence over other financial issues in a year that was dominated by talk of inflation and COVID.
That is even more true here in Saskatchewan where we’re intend on putting almost $8,300 into an RRSP for last year. That is $1,500 more than the national average.
Roughly 60 per cent of Canadians have an RRSP and the average holding in them is $142,000. That’s 25 per cent higher than in 2020 as rising stock markets helped the average investor exceed what we consider a normal rate of return.
The one place where the study flagged an issue is basic knowledge. We may be contributing more, but our literacy on retirement tools such as RRSPs, TFSAs and what we can put into them declined last year.