Half of Canadians won’t contribute to RRSPs

More than half (54%) of Canadians won’t be making RRSP contributions for 2014, finds a new CIBC poll.

Further, out of those who plan to add to their retirement funds, only 42% have the money to do so.

Read:

• Prioritize RRSPs over debt repayment: Golombek
• Almost half of Boomers don’t retire when planned

“With the contribution deadline fast approaching, many Canadians could miss the opportunity to contribute to their retirement [savings],” says Christina Kramer, executive vice-president of Retail and Business Banking at CIBC.

She notes it’s difficult for families to save at the last minute since “some families are still paying off holiday purchases, or planning spring getaways.”

Read: 6 tax filing tips for 2015

On the opposite end of the spectrum, people can also make the mistake of overcontributing to their RRSPs. If you have clients who fall into this category, Advisor Group’s content editor Jessica Bruno pointed out in the December 2014 edition of Advisor’s Edge Report that you’ll need to help them decide whether to withdraw the extra money.

If your client has un-deducted RRSP contributions exceeding her deduction limit by more than $2,000, she’s overcontributed. CRA does not penalize smaller overcontributions.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.