BMO Financial Group
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BMO Financial Group
BMO Bank of Montreal

BMO Bank of Montreal

March 01, 2012 06:00 ET

BMO Annual Post-RRSP Deadline Study: Quebecers Increased Their Average RRSP Contribution by 42 Per Cent This Year

- Residents of Quebec contributed an average of $5,318 this year to their RRSPs - up 42 per cent from last year

- Forty per cent in the province contributed to an RRSP before Feb 29th deadline

- Mutual funds were top RRSP investment choice for Quebecers, followed by GICs, bonds, equities and ETFs

- Nationally, men were more likely than women to have made a contribution

TORONTO, ONTARIO--(Marketwire - March 1, 2012) - BMO Financial Group today released the findings of its Third Annual Post-RRSP Deadline Study, which found that, despite ongoing volatility in the financial markets, Quebecers contributed an average of $5,318 this year to their Registered Retirement Savings Plans (RRSPs). This represents a 42 per cent increase over last year.

Other key findings from Quebec:

  • Forty per cent of Quebec residents contributed or planned to contribute to an RRSP before the February 29th deadline, almost unchanged from 41 per cent last year
  • Mutual funds were the investment of choice of Quebecers this RRSP season with 52 per cent investing in them, followed by GICs and bonds (21 per cent each), equities (20 per cent) and ETFs (8 per cent)

"It's very encouraging that, despite the instability we've seen in the markets, forty per cent of Quebec residents made saving for retirement a priority by making a contribution to their RRSP this year," said Jamal Khalil, Regional Sales Manager, Quebec, BMO Bank of Montreal. "Moreover, they increased their contribution from last year, demonstrating an understanding of the importance of taking ownership of their retirement by saving through vehicles such as RRSPs."

Key National Findings:

  • Thirty-eight per cent of Canadians made a contribution this year (largely unchanged from the previous two years)
  • Canadian men (41 per cent) were more likely to contribute than women (34 per cent)
  • The average contribution was $4,670 (compared to $4,538 last year).
  • Mutual funds were the investment of choice this RRSP season with 59 per cent investing in them, followed by GICs (25 per cent), equities (22 per cent), bonds (12 per cent) and ETFs (6 per cent)
  • Of those who did not make a contribution this year, 61 per cent cited a lack of funds as being the reason

"Many Canadians are financially stretched and saving for retirement often gets pushed down the list of priorities," said Tina Di Vito, Head of the BMO Retirement Institute. "However, saving for retirement doesn't have to happen all at once. The key is to make regular contributions to your RRSP, regardless of the amount. You'll be surprised how quickly your nest egg will grow over time."

BMO offers advice on how to find those extra dollars for your RRSP:

  • Out of sight; out of mind - Setting up automatic bi-weekly payments from your bank account to your RRSP can be an easy way to generate savings.
  • Skip the latte - Filling up your cup at the office instead of buying from the local coffee shop can result in an extra $80 a month.
  • Brown bag it - Bringing a lunch from home every day can save upwards of $100 per month.
  • Cancel costly memberships - Cancelling memberships you are not using, such as a fitness or golf club membership, can clear up space in your expense column and add to your nest egg.
  • Mortgage free? - If you have finished paying off your mortgage, put the monthly payments towards an RRSP.

For more information on planning for retirement, please visit www.bmo.com/retirement.

Get the latest BMO press releases via Twitter by following @BMOmedia.

The survey was completed online from February 21, 2012 to February 23, 2012, using Leger Marketing's online panel, LegerWeb, with a sample of 1,500 Canadians. A probability sample of the same size would yield a margin of error of ± 2.5%, 19 times out of 20.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $538 billion as at January 31, 2012, and more than 47,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.

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