Most Canadians intend to save for their retirement this year, according to a recent survey conducted across the country by CIBC. Despite these good intentions, according to the numbers noted by the bank in previous years, most of them won't.
Among the 60% of respondents who declared that they will contribute to their retirement this year, 28% will do so under their Registered Retirement Savings Plan (RRSP) and their Tax Free Savings Account (TFSA), 19% through their RRSP only and 13% through their TFSA only.
Those who stated that they will not contribute to any pension fund represent 31% of those surveyed, compared to 28% last year. Respondents who did not save anything for their retirement in 2012 raised as the main reason a lack of funds (35%).
The savings intentions of Canadians are therefore positive. However, experience from previous years suggests that only about one quarter of eligible taxpayers will contribute effectively.
Those 25 to 34 years old are most likely to contribute
The survey also revealed that those 25-34 years old are most likely to contribute to a retirement savings plan (71%). The trend diminishes with age, with 66% of 35-44 year olds, 62% of 45-54 year olds, 55% of 55-64 year olds and 44% of those older than 65.
Intentions to contribute are highest (65%) in Manitoba, Saskatchewan and Alberta. Ontario (63%), British Columbia (60%) and the Atlantic Provinces (58%) follow. Finally, only 53% of Quebecers plan to save for their retirement in 2013.