Only one in three Canadians will contribute to RRSPs by March 1st deadline

47% of Canadians claim they do not contribute to a RRSP or TFSA at all

TORONTO, Feb. 12, 2018 /CNW/ - When it comes to saving for retirement, many Canadians are not taking advantage of a Registered Retirement Savings Plan (RRSP). Results from a new study commissioned by H&R Block show that only 33 per cent of Canadians are planning to contribute to a RRSP before the contribution deadline.

The study also revealed that 47 per cent of Canadians claim they do not contribute to a RRSP or a Tax-Free Savings Account (TFSA) at all.

"While the number of Canadians contributing to RRSPs has increased since last year, 33 per cent is still very low," says Lisa Gittens, H&R Block Senior Tax Professional. "Canadians should try and take advantage of RRSPs each year where possible to help them achieve their financial goals, maximize refunds and prepare for the future."

There are many reasons why Canadians may not be taking advantage of RRSP contributions, including competing financial demands that make it difficult to put money aside, yet Canadians should know that every penny contributed to a RRSP is tax deductible.

The impending RRSP contribution deadline (March 1) is a chance for Canadians to review their finances and determine how much they can contribute to maximize their refund or minimize what they owe in income tax. To build up RRSP eligibility, Canadians must file a tax return, even if they don't owe any taxes.

The new survey from H&R Block also found that:

• Only 37 per cent of Canadians plan to contribute to a TFSA this year
• Fewer women (49%) than men (58%) contribute to a RRSP or TFSA
• Canadians aged 18-34 (44%) are the most likely to contribute to a TFSA this year
• Canadians aged 35-54 (43%) are the most likely to contribute to a RRSP before the deadline this year
• The Atlantic provinces are the least likely to contribute to a RRSP or TFSA (only 42% contribute), while Manitobans are the most likely to contribute (66% contribute)
• Albertans are the most likely to contribute to a RRSP before the deadline (41% contribute), while Atlantic Canadians are the least likely (23% contribute)

Canadians are encouraged to take time to understand how they can take full advantage of credits and deductions, particularly those associated with RRSPs. For more information, visit one of H&R Block's offices or online at www.hrblock.ca.

About H&R Block Canada
For over 50 years, H&R Block Canada is Canada's tax leader, with over 1,200 locations across Canada, and do-it-yourself Tax Software. H&R Block's comprehensive education program, Tax Academy, trains experts and continually updates their skills. Learn more at www.hrblock.ca or 1-800-HRBLOCK.

About the Survey
From December 27th to December 28th, 2017 an online survey was conducted among 1,522 randomly selected Canadian adults who are Angus Reid Forum panelists. The margin of error—which measures sampling variability—is +/- 2.5%, 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.

SOURCE H&R Block Canada Inc.

Vanessa Andres, Ketchum Public Relations, 416-355-7432, [email protected]