Territories Contribute Most to Retirement, Alberta Close Behind
Statistics Canada released a report this morning showing the different levels of RRSP contributions around the country, and seeing how certain provinces and territories stacked up against each other. Turns out, individuals in the territories contribute the most to their retirement through RRSPs and TFSAs, while Alberta is the leading province in the same category.
As you can see from the chart above, Nunavet has the highest median contribution, with the Yukon and Northwest Territories following close behind. Alberta is last on the list here, but first when it comes to the median contributions throughout all the provinces. Calgary, not shown on the chart, is also surpassing the median contributions for their province, with an average contribution of $2 billion in the city and surrounding areas in 2011. That’s an increase of 1.7 per cent from the previous year. Total contributions for the entire province of Alberta was $4.7 billion.
Not only are Albertans leading the provinces in total contributions now, but they’re also gunning for the title next year – with more saying that they are going to be contributing more to their retirement in the coming year. This you can see from the chart below.
However, right now these are just estimates. And CIBC has also just reported that a number of people who plan on saving for their retirement, never end up doing so. Or at least don’t end up contributing as much as they had hoped.
“While it’s positive that so many eligible Canadians plan to contribute towards their retirement this year, we know from previous years that only 26 per cent of eligible tax filers actually made a contribution to their RRSP but our data shows 47 per cent say they intend to contribute to their RRSP,” says Jamiei Golombek, Managing Director, Tax & Estate Planning at CIBC.