Eighty per cent of Canada's young professionals need and
want advice on tax saving strategies: RBC poll
RBC offers simple tax saving and investment tips to get
TORONTO, February 18, 2010 — Fewer than one-in-ten
(eight per cent) young Canadian professionals aged 18-30 who
are currently attending or have completed college or university
feel they are great at tax planning, according to the RBC
Tax Planning Poll. However, 80 per cent of respondents believe
that learning about tax saving strategies is important, indicating
a demand for advice to help young professionals build a strong
financial foundation as they kick start their careers.
"While tax planning may not be the most interesting
thing to learn about, having a few simple tax saving strategies
in place can help ensure a maximum return," said Lee
Anne Davies, head, Retirement Strategies, RBC. "Every
dollar counts and keeping more money in your pocket can help
you focus on your current financial priorities while preparing
for the future."
Three-in-four (76 per cent) young professionals feel the
need to start investing for their retirement, more so among
those who are also interested in learning more about tax planning
(82 per cent), further underscoring an interest in accessible
advice on tax and financial planning strategies. Of the 24
per cent who do not currently feel the need to start investing
for retirement, half of the respondents (53 per cent) would
like to start, but say they can't due to their current economic
"Balancing current financial responsibilities and savings
goals can be challenging, but starting with small steps now
can make a big difference in your future," said Davies.
"One of the most effective ways to start investing is
to have an automatic savings plan. Many people find that they
don't even miss the money, because they never see it."
RBC provides the following advice to maximize tax savings
and start investing:
1) Start early and invest regularly. Saving for retirement
may not be a priority when it's decades away; however, one
key to achieving your retirement goals is to start preparing
at a young age. Regular investment strategies, such as an
automatic RRSP contribution program, will help build a nest
egg from small but consistent savings. Find out about your
unused contribution room and consider topping up your RRSP
when you receive work bonuses or tax refunds.
2) Get next year's tax refund early. If you normally
get a tax refund, you could consider applying to the Canada
Revenue Agency on CRA Form T1213 for a waiver to have your
employer reduce your taxes withheld at source from your paycheque.
Quebec residents could also use Revenue Quebec's Form TP-1016.
3) Consider a Tax-Free Savings Account. With a Tax-Free
Savings Account, your money grows tax-free, up to $5,000 per
year. Also, unused contribution room can be carried forward
to future years and any money withdrawn will be added to unused
contribution room so you can re-contribute that money starting
the following year.
4) Carry forward your RRSP tax deduction. If you make
an RRSP contribution this year, you don't have to claim it
on your 2009 tax return. You can carry forward your RRSP tax
deduction to a future year, when you are earning more and
in a higher tax bracket, to maximize your tax reduction.
The RBC Tax Planning omnibus was conducted by Ipsos Reid
between January 29 and February 5, 2010. This online survey
of 503 young Canadian professionals, between the ages of 18-30
and who are currently attending or have completed college
or university, was conducted via the Ipsos I-Say Online Panel,
Ipsos Reid's national online panel. The results are based
on an unweighted probability sample of this size, with 100
per cent response rate. With a representative sample of this
size, the results are considered accurate to within ±4.4
percentage points, 19 times out of 20. Margins of error for
subgroups will be larger.
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Jill Quinn, RBC, (416) 313-8121
Cyndi Maisonneuve, RBC, (416) 974-1757