Canada's Housing Bubble

Jonathan Chevreau March 4, 2011 opinion.financialpost.com

While the RRSP deadline passed on Tuesday midnight, it seems we’re not quite yet done with bank RRSP surveys. BMO Financial Group today issued a release to say 39% of Canadians contributed to RRSPs this year— up a percentage point from last year.

Two thirds plan on using their RRSP tax refund to reinvest in an RRSP/TFSA or pay down debt. Average contribution amount was $4,700. Of those who didn’t contribute, 67% blamed lack of funds while 14% felt they had already saved enough to achieve an ideal retirement lifestyle. 6% aren’t confident about financial markets.

The survey also came to the not surprising discovery that as contributors get older, the amounts of the RRSP contributions rise. Yes, Virginia, the older you get, the more they pay you.

62% of small business owners plan to use their RRSPs to fund their retirement although only 38% contributed to an RRSP before the March 1 deadline.