Strong RRSP sales 2007: poll

A Decima research exit poll conducted on behalf of Investors Group has found that 42% of eligible Canadian investors contributed to their RRSP this season.

It was Investors Group’s first time conducting the poll, so it couldn’t compare figures to those of previous years, but citing figures from a Statistics Canada report from November, which estimated that 31% of eligible Canadians contributed to an RRSP in 2006, IG’s Debbie Ammeter points out that 42% seems like a good omen, especially in light of the stock market tumble the day before the March 1 deadline.

Ammeter said she doesn’t know how well the Decima poll numbers will stack up against the StatsCan figures for this year, but part of the impetus for doing the poll was IG’s wanting to get some credible numbers much earlier than when they’re historically available.

The Decima data was gathered between March 1 and March 4, 2007, through a phone survey of 1,026 pre-retirement Canadians. In addition to an increase in contributions, the poll found that 24% of those who contributed to an RRSP contributed more than they did in the previous year.

Alberta has led the charge to contribute in 2007. The poll found that 52% of Albertans, 10% higher than the national average, contributed to an RRSP. But they weren’t just contributing in higher numbers; they were contributing more. Ammeter says Albertans on average contributed more than $9,000 to their RRSPs compared to the national average of $6,006.

“Maybe we’re seeing evidence of higher salaries in Alberta, where people have either higher RRSP contribution room and/or more disposable income which they can dedicate to RRSP,” she says. “That’s just my speculation, but certainly Alberta did show the highest amounts contributed.”

Manitoba and Saskatchewan were next in the average contribution but were also tied for the lowest percentage of RRSP contributions, with only 38% of the population putting money in an RRSP.

The lowest average contributions went to British Columbia, which, at $4,822, was almost $1,200 below the national average.

Ammeter said the best news from the poll for her company and for the industry in general is that the majority of Canadian contributors are choosing to invest through a financial advisor.

“It’s important to highlight that many people did consult a financial advisor in the process of deciding to make an RRSP contribution. I think it was around 55% of the people [who contributed that] said they had consulted a financial advisor,” she says. “The fact that many people are looking at an RRSP as an important part of their financial planning, and as something that’s worthy of advice, is very reassuring.”

Filed by Mark Noble, Advisor.ca, mark.noble@advisor.rogers.com