Help last-minute contributors beat RRSP clock

Nearly one-third of eligible Canadians (32%) still plan make an RRSP contribution for the 2012 tax year, says a new CIBC poll. And though they’re quickly running out time, more than half of these people say they’re going to put it off until the last 48 hours. Read: RRSPs are more than tax tools “Everyone’s […]

By Staff | February 25, 2013 | Last updated on September 15, 2023

2 min read

Nearly one-third of eligible Canadians (32%) still plan make an RRSP contribution for the 2012 tax year, says a new CIBC poll.

And though they’re quickly running out time, more than half of these people say they’re going to put it off until the last 48 hours.

Read: RRSPs are more than tax tools

“Everyone’s busy, but the time you spend assessing your savings options is an investment in your future and [needs to be] a priority,” says Christina Kramer, executive vice president of retail distribution and channel strategy for CIBC. “There’s still time left before the deadline to talk about which retirement savings option is right for you.”

Among those likely to leave their RRSP contributions to the last minute are Canadians aged 25-to-44, with 40% saying they still need to make time to contribute before Friday, March 1.

“Canadians balancing debt and savings need to consider both sides of their finances when making [retirement] decisions,” adds Kramer. She suggests advisors help them evaluate their options still so they can save as much as possible.

Read: Best ways to mature RRSPs

After taking the time to help clients consider how they can build savings and structure a repayment plan that allows for debt reduction, tell them they can make contributions via phone or online payments.

In the future, urge them to make regular payments to avoid the stress and scramble.

Read: When a client has capitol losses in an RRSP

The poll finds people in B.C. and Alberta are mostly likely to still make a contribution. In both provinces, more than 30% of people plan to make payments.

Those aged 25-34 years old have the highest resolutions, with 45% planning to put funds in. This was followed by 18-to-24 year olds (38%), 35-to-44 years olds (34%), and 45-to-54 years olds (34%). All other age groups fell far below 30%.

Further, only 23% of Canadians have built up their TFSAs so far this year.

Read:

RRSP season no longer exists

Canadians cold to RRSPs: BMO

Over-contribution retribution