(February 17 – 10:15 ET) – RSP contributors in B.C. are expected to make this year’s contributions a last minute affair. That’s the result of an Credit Union Central of British Columbia RRSP survey.
The survey of 459 B.C. residents was conducted in December by the Angus Reid Group. It found that 60 percent of residents who plan to contribute lump sums to their RRSPs for the 1999 tax year will it in February. It found that older contributors are more likely to make lump sum investments, while younger investors were more likely to have some sort of regular contribution in place.
The survey also found that 57 percent of eligible contributors intend to sock some money away, down from 62 percent last year. Those who aren’t planning to contribute said they couldn’t afford it. The 35 to 54 age group comprises the most likely contributors, 67 percent. Compared to just 49 percent in those younger than 35, and 48% in those older than 54.
Mutual funds remain the most popular investment choice, with 66 percent of contributors planning to invest there, up from 61% last year. 30% are planning on term deposits, 21percent are going directly into stocks and 11% are looking to bonds.
Only about 17 percent of contributors will use RSP loans, and 80 percent of those are using them to top up contributions rather than for the full contribution.
-IE Staff