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New Tax Free Savings Account unlikely to reduce RRSP contributions,
according to RBC poll
TORONTO, December 17, 2008 — According to the
19th Annual RBC RRSP Poll, only eight per cent of Canadians
who plan to open a Tax Free Savings Account (TFSA) intend
to reduce their RRSP contribution to put money in a TFSA instead.
Thirty per cent of those who have heard of the TFSA still
plan to contribute as much money to their RRSP as well as
to a TFSA, while 23 per cent plan on moving money from existing
non-registered savings into a TFSA.
"While Canadians continue to use RRSPs to save for retirement,
the TFSA can supplement these savings while sheltering investment
returns from tax," said Lee Anne Davies, head, advanced
retirement strategies, RBC. "The TFSA allows Canadians
the flexibility to save and invest for a variety of short-term
and long-term financial goals."
Almost half (44 per cent) of Canadians who plan to open
a TFSA, intend to use it as a vehicle for long-term retirement
savings. Among those aged 35 to 54, this figure rises to 57
per cent and for those between the ages of 18 and 34, 53 per
cent plan to use their TFSA to save for retirement. Two in
five Canadians who plan to open a TFSA (40 per cent) cite
saving for an emergency as their primary intention while 29
per cent will use it for everyday savings and 25 per cent
for a large or special purchase.
"When asked to rank their top three financial priorities,
Canadians indicated that regular payments to reduce or eliminate
debt (52 per cent), retirement savings (44 per cent) and general
savings for a rainy day (39 per cent) were top of mind and
also reflect their TFSA plans," added Davies. "We
want to help clients determine their financial priorities
and then offer advice and solutions, so clients can create
the future they want."
The study also found that just over half (55 per cent) of
Canadians have not heard about the TFSA, including 65 per
cent of respondents between the ages of 18 and 34. Among Canadians
who are aware of the TFSA, almost half (47 per cent) are planning
to open and put money in the account.
About the 19th Annual RBC RRSP Poll
The 19th Annual RBC RRSP Poll was conducted by Ipsos Reid
from October 16 to 23, 2008. This online survey of 1,272 Canadians
was conducted via the Ipsos I-Say Online Panel, Ipsos Reid's
national online panel. The results of this poll are based
on a sample where quota sampling and weighting are employed
to balance demographics and ensure that the sample's composition
reflects that of the actual Canadian population according
to Census data. Quota samples with weighting from the Ipsos
online panel provide results that are intended to approximate
a probability sample. Statistical margins of error are not
applicable to online polls, however, an unweighted probability
sample of this size, with a 100 per cent response rate, would
have an estimated margin of error of ± 2.7 percentage
points, 19 times out of 20, had the entire adult population
of Canada been polled.
Your Future by Design® is RBC's distinctive approach
to help clients identify, plan, and realize their goals for
retirement. With the guidance of RBC financial planners and
investment and retirement planners, Your Future by Design
helps clients create a blueprint for a successful lifestyle
and financial plan for retirement based on what is truly important
to them in key areas in life, including family, health, home,
lifestyle, work/business, mind and spirit, and legacy. To
find out more about how RBC can help build a blueprint for
the future, visit www.rbc.com/yourfuture
or call 1-866-335-4055.
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Media contacts:
Sarah Pendrith, RBC Wealth Management, 416-974-8820
Jackie Braden, Media Relations, 416-974-2124
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