{"id":2737,"date":"2011-01-19T21:27:38","date_gmt":"2011-01-20T02:27:38","guid":{"rendered":"http:\/\/metroactive.org\/wordpress\/blog\/the-young-and-the-rrsp-less-%e2%80%93-fewer-young-canadians-saving-for-retirement-rbc-poll\/"},"modified":"2011-01-19T21:27:38","modified_gmt":"2011-01-20T02:27:38","slug":"the-young-and-the-rrsp-less-fewer-young-canadians-saving-for-retirement-rbc-poll","status":"publish","type":"post","link":"https:\/\/metroactive.org\/wordpress\/2011\/01\/19\/the-young-and-the-rrsp-less-fewer-young-canadians-saving-for-retirement-rbc-poll\/","title":{"rendered":"The young and the RRSP-less \u2013 Fewer young Canadians saving for retirement: RBC Poll"},"content":{"rendered":"

The young and the RRSP-less \u2013 Fewer young Canadians saving for retirement: RBC Poll – The title of the feed item<\/p>\n

TORONTO, January 19, 2011 \u2014 <\/strong>The number of Canadians aged 18 to 34 who have RRSPs has dropped to 39 per cent \u2013 the lowest level in almost a decade \u2013 and fully 45 per cent have not started saving for retirement yet, according to the 21st Annual RBC RRSP Poll.<\/p>\n

Overall, retirement savings ranked seventh as a financial priority among younger Canadians (26 per cent). The RBC poll found that this age group is more focused on other financial goals such as regular payments to reduce or eliminate debt (56 per cent), saving for a rainy day (45 per cent) and homeownership (44 per cent).<\/p>\n

The declining number of younger Canadians with RRSPs confirms a downward trend identified in last year\u2019s RBC RRSP Poll<\/a> and discussed in an RBC Economics report<\/a> issued in January 2010.<\/p>\n

\u201cWe\u2019re seeing other financial priorities become increasingly top of mind for younger Canadians who may not realize they are missing out on one of Canada\u2019s best income tax savings vehicles, as well as the potential to grow their investments more quickly,\u201d said Lee Anne Davies, head, Retirement Strategy, RBC. \u201cRetirement may seem far off in the future and we understand that paying off debt, purchasing your first home or raising young families presents competing financial needs, but building a secure future can and should be part of any plan to meet those needs.\u201d<\/p>\n

The RBC poll also found that, despite ranking homeownership as third on their financial priorities list, younger Canadians may be under-utilizing the RRSP benefits available to first-time homebuyers. A federal government program allows for tax-free RRSP withdrawals to help finance the first purchase of a new home; yet only six per cent of 18 to 34-year-olds withdrew money from their RRSP to purchase a home in the past year.<\/p>\n

\u201cYounger Canadians\u2019 relatively low participation in the government\u2019s first-time homebuyer\u2019s program may in part reflect a lack of understanding about what an RRSP can do for you well ahead of your retirement years,\u201d added Davies. \u201cThe start of the year is a very good time to sit down with your financial planner or visit your bank branch and find out what your retirement and investment options are and to make sure you are making the most of the resources available to you.\u201d<\/p>\n

2010 RRSP Fast Facts \u2013 Canadians aged 18 to 34<\/strong><\/p>\n