Taxes are due in two months, and the deadline for contributing to your RRSP was yesterday. The COVID Pandemic affected how we contribute. Almost half (44 percent) of Canadians agreed the coronavirus pandemic has negatively impacted their ability to save for retirement and, as a result, 31 percent have changed their financial priorities, according to a new survey by Edward D. Jones & Co.
The survey, which polled over 1,500 adult Canadians, also found 33 percent of respondents said they’re planning to contribute to their registered retirement savings plan, while 52 percent said they plan to forego their RRSP contribution and another 15 percent are undecided.
Among those not contributing to their RRSP this year, 55 percent said it was because they couldn’t afford to — an increase of 11 percent increase over last year. Notably, the number of Canadians planning to contribute the maximum amount in an RRSP remained unchanged at 10 per cent.
Meanwhile, 45 percent said instead of contributing to a RRSP they’re opting to contribute to other investment accounts and opportunities, such as a tax-free savings account (49 percent), non-registered investment account (17 percent) or buying real estate (eight per cent). One quarter (25 percent) of respondents said they consider debt repayment a key financial priority, while a little more than that (29 percent) noted they can’t afford to invest their money at all.
We are experiencing high inflation, economic volatility and uncertainty around the pandemic, all of which impact the unique financial situation of Canadians. As a result, Canadians are saving in investments they can withdraw quickly, just in case things get worse. Savings is still a priority for many Canadians, but we saving for the short term, not the long term.
No comments:
Post a Comment