Survey: 54% of Investors Need a Minimum Amount to Make an RRSP Contribution
According to an Omnibus survey of 1,000 Internet users 18 or older conducted by the National Bank Research team between January 7 and 9, 2014, some 54% of Quebec residents say they would need to have a minimum amount of funds available to contribute to their RRSP.
When asked to specify, the average of the amounts turned out to be $2,750, a figure that suggests investors may want to reconsider their approach to RRSP planning, according to Daniel Laverdière, Senior Manager – Financial Planning and Advisory Services at National Bank Private Wealth 1859.
"The most surefire way to reach your savings objectives is to make regular contributions to your RRSP or TFSA. In addition to the income tax refund that RRSP contributions generate, putting even a little money aside regularly can add up impressively over time. Saving is also an excellent way to learn about investments," explains Mr. Laverdière. "Once you begin receiving investment statements, your level of knowledge increases."
He believes that systematic saving remains an excellent way for investors to plan their annual RRSP contribution. "You can establish a fixed amount to be deducted from each paycheque, allowing you to invest regularly. This approach has numerous advantages, including helping you remove emotion from your investment decisions, reduce risk and spend discretionary income more wisely," he added.
"The Bank has also developed a valuable tool, the Investment Track, which is available both on our website (www.nbcmore.ca/investmenttrack) and as an iPad app, allowing investors to accurately assess their savings efforts," explained Mr. Laverdière.
Among the 1,000 investors surveyed, 53% stated that they did not intend to contribute to their RRSP over the next three years, while 36% planned to do so.
National Bank would like to remind its clients that there are several ways to contribute to their RRSPs. They can meet with a branch advisor, contribute by phone via our dedicated 1-877-779-7337 line, or log on to www.nbc.ca/rrsp. National Bank Direct Brokerage clients can call 1-800-363-3511 or transfer funds online at nbdb.ca.
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With $188 billion in assets as at October 31, 2013, National Bank of Canada (www.nbc.ca) together with its subsidiaries, forms one of Canada’s leading integrated financial groups, and has been named among the 20 strongest banks in the world by Bloomberg Markets magazine. The Bank has close to 20,000 employees and is widely recognized as a top employer. Its securities are listed on the Toronto Stock Exchange (TSX: NA). Follow the Bank's activities via social media and learn more about its extensive community involvement at clearfacts.ca and our social commitment.
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