RRSP contributions fall by 26% between 2000 and 2013

The number of Canadians in their prime-working years that contributed to their RRSP accounts steadily declined from 2000 to 2013, according to a report by Statistics Canada.

The report said among individuals aged 25 to 54, the number of annual RRSP contributors fell 16% between 2000 and 2013.

The number of contributors in the age range fell to 4.2 million in 2013 compared with 5.0 million in 2000.

Meanwhile, the total value of annual RRSP contributions fell by the same group approximately 26% after being adjusted for inflation.

The total value of RRSP contributions fell to $22.5 billion in 2013 compared with $30.6 billion in 2000 when measured in 2013 constant dollars.

The report released Monday noted that two of the largest contribution declines were in 2008 and 2009, which coincided with the financial crisis and the introduction of TFSAs.

Read: Canadians should use TFSAs to invest in small business: MEI

But whether this trend results from factors such as the recent economic recession, shifts toward other means of wealth accumulation — including home equity — or entirely different reasons is an open question, the report said.

When it comes to RRSP withdrawals, the report shows “income smoothing” — reducing fluctuations in income — is a main driver. For example, RRSP withdrawers are more likely to have lower earnings or to collect EI or social assistance.

Read: Many Canadians withdrawing RRSP funds for daily expenses

Read the full report.

Also read:

Are RRSPs better for business owners?

Navigate RRSP attribution rules

Staff, with files from The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.