While most Canadians say they are worried about having enough money for their retirement, about two out of three people do not plan to contribute to their Registered Retirement Savings Plans (RRSP) for the 2015 tax year.
Although 75% of Canadians say they are concerned about saving enough for their retirement, a poll conducted for CIBC shows that only 37% intend to put money into an RRSP this year. Another 13% say they aren't sure if they will use their RRSPs, and the remaining 50% indicated they would not contribute.
Tax Free Savings Accounts
Asked why they do not intend to contribute, 41% said they simply do not have the money, while 14% said they have other financial priorities such as paying down debt, home renovations, or buying a home. Only 17% of respondent said that they were still saving but preferred to use other vehicles such as Tax Free Savings Accounts (TFSAs) or other investment options.
The poll revealed that members of Generation X were particularly concerned about the adequacy of their retirement savings; while 77 per cent of Millennials (age 18-34) and 66% of Baby Boomers (age 55 and over) said they were concerned, 86% of those between the ages of 35 and 54 said they were worried. Even so, only about half (48%) of Gen Xers say they plan to contribute to their RRSPs this year.
Peak spending years
"The conundrum for many Gen Xers is that they have reached their crucial saving years as well as their peak spending years, whether it's paying down the mortgage, supporting their kids, or helping elderly parents, and they are being pulled in competing directions," comments Christina Kramer, executive vice president of retail and business banking at CIBC.