The number of Canadians who contributed to a registered retirement savings plan as well as the amount of their contributions, have both dropped sharply for the second straight year, according to a report from Statistics Canada.

In total, 5,991,440 taxfilers contributed just under $27.1 billion to an RRSP in the 2002 tax year. The number of contributors was down 4% from 2001, while the amount of contributions fell 4.8%. Data for the study came from income tax returns filed in the spring of 2003.

These declines occurred despite a 2% increase in the number of taxfilers with room, and despite stability in median employment income says StatsCan.

It says median employment income in 2002 was $24,400, down a slight 0.5% from the previous year, after adjusting for inflation.

According to the statistical agency, contributors and contributions reached record levels in 2000. During that year, 6,291,170 taxfilers contributed almost $29.3 billion.

The median RRSP contribution in 2002 declined $100 from $2,600 in 2001 to $2,500. The median is the point at which half of taxfilers are below and half are above.

RRSP participation rates among men and women, and across age groups, shifted slightly. Although the number of women who contributed declined, they accounted for 46% of contributors, up from 45% in 2001. Their median contribution of $2,100 was down from $2,200 in 2001.

The number of contributors fell in all age groups except those aged 55 to 64. However, even in this age group, the average contribution declined.

For the 2002 tax year, 80% of those who filed taxes had room. Of these, about 34% made contributions.