Survey: RRSP Remains Top Long-Term Savings Tool for Canadians

Edward Jones poll finds most Canadians determined to contribute against odds of economic uncertainty

TORONTO, ON, February 13, 2024 – The current economic climate and external pressures such as interest rates and inflation are placing a strain on the relationship between Canadians and their money.

New polling data from Edward Jones Canada finds most Canadians (68 per cent) say they are cautiously optimistic – at best – about their personal finances this year. Nearly a fifth (18 per cent) say they are struggling just trying to pay their bills each month.

Despite this, half of Canadians (49 per cent) still expect to contribute to their RRSPs this year, but only 21 per cent say they will contribute the maximum amount. Following a significant 55 per cent spike in the number of Canadians who intended to make contributions between 2022 and 2023, this year is consistent with the 2023 findings when 51 per cent of Canadians said they plan to contribute to their RRSP and 23 per cent planned to contribute the maximum.

Other survey findings:

• 58% of Canadians aged 18-34 and 62 per cent in the 35-54 age bracket are planning to contribute to their RRSPs.
• 12 per cent of Canadians cannot afford to contribute to their RRSP.
• 10 per cent of Canadians plan on investing elsewhere (e.g., Tax-Free Savings Account, First Home Savings Account, real estate, etc.).

“It’s clear that amid the current economic climate, Canadians prefer to stick to what they know by contributing to their RRSP this year,” says Julie Petrera, Senior Strategist, Client Needs at Edward Jones. “RRSPs are a valuable retirement savings tool, in fact they can be used for saving for more than just retirement. 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. An Advisor can help determine the best way to use these accounts for each individual’s unique situation.”

For those looking for investment options beyond an RRSP:

• The majority (59 per cent) are considering other registered accounts like a Tax-Free Savings Account (TFSA) or First Home Savings Account (FHSA).
• One-fifth (19 per cent) are considering non-registered investment accounts.,
• Nearly a tenth (8%) are considering real estate.

"Retirement planning is not a one-size-fits-all approach. It’s important to learn about the options available and the various benefits and restrictions they offer, both immediate and longer-term. With so many factors to consider for every account type and individual situation, partnering with a trusted advisor can help Canadians think differently about money and how they plan for retirement,” says Petrera. “And as one’s needs and goals are constantly changing, it’s crucial not to put a plan on autopilot and instead evolve investing strategies to address those changes.”

The RRSP deadline is February 29, 2024. Canadians could be eligible to contribute up to 18 per cent of their previous year's earned income, to a maximum of $30,780 plus unused carried forward room (subject to any pension contribution adjustments). Click here for more information.

Online Polling Methodology

Between January 24 and 26, 2024, 1,699 Canadians, 18 years of age or older participated in the online survey by Pollara Strategic Insights. A representative sample of this size would be considered accurate to within ±2.4%, 19 times out of 20. Results have been weighted using the latest Stats Can data to be representative of the Canadian population as a whole. 

About Edward Jones Canada

Edward Jones is a full-service investment dealer which provides a range of investment products, services, and solutions to retail investors. We have 850 financial advisors in Canadian communities from coast-to-coast. A member of the Canadian Investment Regulatory Organization and the Canadian Investor Protection Fund, the firm is also a participating organization in the Toronto Stock Exchange. Edward Jones has been ranked #1 nine times in the last 11 years in the J.D. Power Canada Full-Service Investor Satisfaction Study. For more information, visit edwardjones.ca.

Media Contact:

Darryl Konynenbelt
Edward Jones Public Relations 
[email protected]

Adam McPhail, Proof Strategies for Edward Jones
[email protected]