According to a recent RBC report, Canadians are contributing less to their RRSP’s. Contributions rose from the 1960’s to the late 1990’s, but since then, contributions have declined. If the drop continues at this rate, less than 2% of disposable income will be contributed to RRSP’s. We haven’t seen contribution rates that low since the mid-70’s.
There’s concern that people aren’t properly preparing for retirement. But, one possible explanation is that people are investing in real estate, and using that as a bigger part of their retirement strategy.
Edmonton Journal has the story:
RRSP use on track to 35-year low: RBC