Canadians’ total RRSP contributions fell in 2022 after pandemic spike: StatCan
The number of Canadians contributing to registered retirement savings plans in 2022 shrank overall, a new report shows.
The proportion of tax filers claiming RRSP contributions between the ages of 25 and 44 years decreased the most, according to a Statistics Canada report released Tuesday.
However, among those who did add to their RRSPs that year, those between the ages of zero and 34, were the only age group that increased the amount they contributed.
Overall, RRSP contributions were down 3.4 per cent in 2022 when compared to the year prior.
“This decline in annual contributions followed increases in 2020 (+13.1 per cent) and in 2021 (+12.2 per cent) and reflects broader movements in household savings over this period,” the federal agency said.
“The proportion of tax filers making an RRSP contribution (-0.7 percentage points to 21.7 per cent) also decreased in 2022, resuming a 12-year (2008 to 2019) downward trend that paused during 2020 and 2021, when household savings peaked early in the COVID-19 pandemic.”
The findings build off recent reports on retirement and unaffordability; high inflation, which peaked in 2022, impacted Canadians’ wallets and their ability to save, and only 35 per cent of Canadians over 50 who planned to retire felt they were financially prepared to do so, said Toronto Metropolitan University’s National Institute on Ageing in January.
Meanwhile, Canadians ages 28 to 44 who participated in a BMO survey in February said they think they need about $2.1 million to retire, the highest among all adult generations.
The survey added 37 per cent of Canadians are putting less money toward retirement savings, while 38 per cent of Gen Z respondents (ages 18 to 27) said they are putting off saving for
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