With only a couple weeks left to make a contribution to your RRSP for the 2020 tax year, we are seeing how Canadians are viewing that particular tax-deferring saving tool. This is the first hint we’ve received about how Canadians look at retirement saving in the COVID-19 era.
BMO Bank of Montreal recently tabled its annual RRSP survey which shows our awareness levels might actually be slipping. Fewer people reported knowing the basic details of how to invest in a registered retirement savings account, what we could hold in the account and what limits were placed on the amount of money we can sock away in one of these.
They also discovered that women are not as aware of the rules and regulations as their male counterparts. That has prompted the bank to assemble some online tools to help women build their confidence in investing and financial management.
They also found the average amount held by Canadians in an RRSP is just over $112,000 and one in eight of us will not make a contribution for the last tax year because of the pandemic.