Procrastination on retirement savings becoming an annual
habit for many Canadians, with half of those planning to contribute
for 2014 tax year leaving it to final two weeks before
deadline
TORONTO, Feb. 27, 2015 /CNW/ - Half of Canadians intending
to contribute to an RRSP for the 2014 tax year have left it to the
final two weeks before the March 2
deadline, finds the latest poll from CIBC (TSX: CM) (NYSE:
CM).
The poll found that while only one-third of Canadians said they
were intending to contribute to an RRSP for the 2014 tax year, half
of them had yet to make their contribution by February 15th when the poll was
completed. Another 14 per cent were still undecided on whether they
were going to contribute.
Key findings of the poll include:
- 32 per cent of Canadians intend to make an RRSP
contribution for the 2014 tax year
-
- 16 per cent said they still planned to contribute
between February 16 and the
March 2 deadline
- In addition, 14 per cent said they were not sure yet
whether they would contribute or not
"There's still time before Monday's deadline for Canadians to
contribute to their RRSP and apply that contribution to their 2014
tax return," says Christina Kramer,
Executive Vice President, Retail and Business Banking, CIBC. "While
leaving your contribution to the last minute isn't ideal, it's
important to make that contribution even if you're not yet certain
where you will invest those funds for the long term."
Ms. Kramer noted that Canadians can contribute to a guaranteed
investment today within their RRSP, then make longer term
investment decisions about those funds when they have more
time.
Canadians don't know why they have left it until the last
minute
When asked why they left their RRSP contribution to the eleventh
hour, nearly one-third (30 per cent) of Canadians said they
were "unsure" why they procrastinated.
Others said it was because now is when they start thinking about
tax season and looking for ways to reduce their taxes (21 per
cent); 14 per cent said it was out of habit and 12
per cent said they didn't have the money until now to
contribute.
Why Canadians aren't contributing to their RRSP this
year
A prior CIBC poll revealed that more than half of Canadians
(54 per cent) do not plan to contribute to their RRSP for
the 2014 tax year, citing a lack of money (37 per cent); and
a preference to invest in a TFSA (17 per cent) as the
primary reasons.
Start now for next year
With Monday's deadline looming, Canadians who make a habit of
contributing at the last minute or only just start thinking about
2014 tax returns should consider taking action now to get ahead of
their 2015 planning to get themselves on a sounder financial and
retirement planning footing. There are many tips to save early.
"Tax planning and retirement savings should be done year-round,"
says Ms. Kramer. "The key is to start early, save often and pay
yourself first."
To help manage your last minute RRSP contributions, CIBC
offers the following tips:
Visit your nearest CIBC branch to meet with an Advisor:
An advisor can also help to identify opportunities to build your
savings and structure a repayment plan that allows for debt
reduction, both key elements of a long term retirement
strategy. You can locate your nearest CIBC branch through the
branch locator tool at www.cibc.com simply by entering your postal
code.
Contribute by Phone: 24 hours a day, you can call
1-800-465-CIBC (2422) to discuss your RRSP options over the phone
and make a contribution from an existing CIBC account.
Make your Contribution Online: CIBC clients can log into
CIBC Online Banking at www.cibc.com to deposit funds to an RRSP
from an existing CIBC account before the deadline.
Contribute regularly: Even if you find yourself short on
funds this year, now is the time to start making regular
contributions to your retirement plan. Contributing smaller
amounts more often is easier than coming up with on lump sum, so
that you don't find yourself in the same position before next
year's RRSP deadline.
KEY POLL FINDINGS
Percentage of Canadians who plan to make a contribution to their
RRSP for the 2014 tax year:
No, I am not making an RRSP contribution for the
2014 tax year |
54% |
Yes, intend to make an RRSP contribution for the
2014 tax year |
32% |
Those still undecided |
14%
|
Primary reasons why Canadians who plan to make an RRSP
contribution for the 2014 tax year left it to the last minute, by
percentage:
I'm not sure |
30% |
Now is when I start thinking about tax season and
look for ways to reduce my taxes |
21% |
Out of habit, I always wait until the last
minute |
14% |
I still don't have the money saved but I'm hoping
to contribute by taking from my savings or borrowing it |
13% |
I haven't had the money until now to
contribute |
12% |
I've been avoiding it because I'm not sure what to
do |
10% |
Primary reasons why Canadians who do not plan to make an RRSP
contribution for the 2014 tax year are not doing so, by
percentage:
I don't have the money |
37% |
Other |
20% |
I prefer to invest in a TFSA or other investment
options |
17% |
I don't need the tax benefit so I'd rather use the
money elsewhere |
9% |
I am more focused on debt management right now
than saving for retirement |
9% |
I have other priorities and I'm using the money I
might otherwise have put into an RRSP for another purpose |
5% |
I had the money saved but an emergency happened
and I needed to use these savings |
2% |
From February 13th to
15th 2015, an online survey was conducted among 1,504
randomly selected Canadian adults who are Angus Reid Forum
panelists. The margin of error—which measures sampling
variability—is +/- 2.53%, 19 times out of 20. The results have been
statistically weighted according to education, age, gender and
region (and in Quebec language)
Census data to ensure a sample representative of the entire adult
population of Canada.
Discrepancies in or between totals are due to rounding.
About CIBC
CIBC is a leading Canadian-based global financial institution
with nearly 11 million personal banking and business clients.
Through our three major business units - Retail and Business
Banking, Wealth Management and Wholesale Banking - CIBC offers a
full range of products and services through its comprehensive
electronic banking network, branches and offices across
Canada with offices in
the United States and around the
world. You can find other news releases and information about CIBC
in our Media Centre on our corporate website at www.cibc.com.
SOURCE CIBC