More Canadians contributed to Registered Retirement Savings Plans and Tax Free Savings Accounts in 2009 than the previous tax year, and financial advisors are partly to thank, a recent Investors Group poll found.

The fourth annual Investors Group RRSP Exit Poll, which involved interviews with nearly 1,000 investors in early March, showed a year-over-year increase in the number of Canadians making use of tax-efficient savings vehicles.

Of the respondents, 36% said they made RRSP contributions during the 2009 tax year, up from 31% in the company’s 2009 exit poll. Of those who contributed to their RRSP, 37% said they also contributed to a TFSA.

Overall, 31% of investors said they have opened a TFSA, compared to just 17% last year at this time.

“With both offering tax saving advantages and flexibility, the RRSP and TFSA are two sides of the same coin,” said Debbie Ammeter, vice-president of advanced financial planning support at Investors Group. “It’s encouraging to see more Canadians taking advantage of ways to keep more money working for them.”

The Investors Group poll found that 16% of Canadians continued to be cautious with their RRSP investments, sticking to short-term and lower risk vehicles such as bonds and money market funds. This is unchanged from the previous year.

Canadians who consulted a financial advisor were clearly pleased with the experience, according to the poll. More than 80% of respondents said they found their advisor helpful or very helpful, and 17% said they decided to contribute more money to their RRSP after speaking with an advisor.

“Working with a financial advisor helps Canadians build their retirement plans and keep them on track,” Ammeter said.

IE