Canada NewsWire
TORONTO, Feb. 6, 2020
TORONTO, Feb. 6, 2020 /CNW/ - According to the annual BMO Registered Retirement Savings Plan (RRSP) study, Canadians are turning to and investing in their RRSPs more than ever – 69 per cent now hold an account at an average amount of $111,922 dollars.
Provincially, the average amounts held in RRSPs in Atlantic Canada, Quebec and Alberta have increased by 22 per cent from $17,000 to $18,000 since last year, and those in Ontario and British Columbia have increased their holdings by 6 per cent from $8,000 to $10,000. Canadians who have already contributed to their RRSP say they have contributed $6,409 – this is up from $5,247 in 2018. Those who plan to contribute are likely to invest an average of $6,033, which is up 55 per cent from last year ($3,828).
Region | Amount held in | Average amount | Average amount |
National | $111,922 | $6,409 | $6,033 |
Atlantic | $96,539 | $4,013 | $1,178 |
Quebec | $99,659 | $4,704 | $6,208 |
Ontario | $128,742 | $9,535 | $6,228 |
Prairies | $92,127 | $5,369 | $3,191 |
Alberta | $116,426 | $4,777 | $6,024 |
British Columbia | $96,665 | $6,720 | $7,822 |
"It's encouraging to see Canadians across the country emphasizing long-term investing and boosting their planned contributions," said Robert Armstrong, Director, Multi-Asset Solutions, BMO Global Asset Management. "While Canadians plan to contribute to their RRSPs, we advise individuals to monitor their progress and make regular contributions to avoid stress associated with overcontributing penalties and meeting the RRSP deadline."
The Retirement Equation
Up against constantly changing variables like life expectancy rates, cost of living, and career paths, Canadians are moving the bar on when they plan to retire. The report revealed:
"The financial equation for retirement is changing, and Canadians need to consider many variables when determining how much they need to fund the next chapter of their lives," said Mr. Armstrong. "It's important Canadians work with a financial advisor to establish an effective plan that prepares them in the lead up to and following retirement. A financial planning expert can help define a personalized strategy and approach to help save and invest for the future."
BMO offers Canadians the following tips to maximize the benefits of a RRSP:
For more information on BMO Registered Retirement Savings Plan Accounts, opening an account, or looking for help, please visit www.bmo.com/rrsp. BMO's Retirement Savings Calculator can be accessed at www.bmo.com/financial-calculators.
The BMO RRSP Survey was conducted by Pollara Strategic Insights via an online survey between November 26 and December 3, 2019, with an online sample of 1,500 adult Canadians. Data has been weighted using the latest census information to be representative in terms of age, gender and region. The margin of error for a probability sample size of 1,500 is ± 2.5% 19 times out of 20.
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $852 billion as of October 31, 2019, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
SOURCE BMO Financial Group
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