Canadians Looking to Bump Up Savings Rates in 2008

December 3, 2007 ( - Most Canadians own a retirement account, and plan to contribute the same - or more - to that account next year, according to a new report.

A record-breaking 75 per cent of Canadians own a Registered Retirement Savings Plan, or RRSP, according to the sixth annual RRSP Investment Intentions poll from Investors Group. RRSP ownership has increased from 64% last year, the second consecutive year this number has grown by 10 points or more, according to a press release.

Among Canadians who already have a RRSP, or plan to start one this year, three-quarters plan to contribute the same or more to their RRSP portfolios in the 2007 tax year than they did in 2006. Ironically, those good intentions are strongest among respondents 55-years of age and under, with most 78% of Canadians aged 25 to 34 planning to contribute at or above this year’s amount, while 82% of those aged 35 to 44 plan to do so, as do 84% 45 to 54 year olds.

Debt Lodes

Investors Group’s RRSP Investment Intentions Poll found more than one-third of non-retired Canadians (35%) plan to carry up to $100,000 in debt into retirement, but just 28% of those say that will be in the form of a mortgage on a primary residence (credit cards, lines of credit or personal loans were cited nearly twice as often).

One-in-five non-retired homeowners (19%) plan to use home equity to generate retirement income. Of those hoping to generate income from their home equity, 40% believe their home will contribute between 10% to 30% of their retirement income.

A total of 2,055 surveys were completed with Canadian adults between September 4th and September 13th 2007, using the Harris Decima online panel.