The majority of Canadians (80%) who have savings/investments feel that it is either very or fairly important to make regular contributions to their investments, according to a study done for Scotiabank.

The study, conducted by TNS Canadian Facts, showed that residents of Alberta and Quebec, at 83% and 82% respectively, top the national average in saying regular contributions are important.

The study also revealed that 76% of Canadian investors 18 years of age and older make contributions to their investments at least annual—both within and outside an RSP—while 41% opt to make contributions on a monthly basis. Residents of Quebec tend to favour weekly contributions—almost double the national average.

Canadian investors made an average contribution of $2,035, the last time they contributed to their RSP. However, the study indicates that most Canadians contribute more to their savings/investments than their RSPs. The last time they contributed, Canadian investors allocated an average of $648 more to non-RSP investments.

This investing pattern is most pronounced in British Columbia, where residents made an average contribution to their savings/investments of $5,054 compared to an average of $1,596 to their RSP. Albertans and Atlantic Canadians stand alone in contributing more to their RSPs than other savings/investments.

“It’s good to see that Canadians aren’t putting all of their eggs in one basket,” said John Kellett, senior advisor, mutual funds business development, Scotiabank. “Contributions earmarked for retirement should be considered a priority, based on an individual’s retirement goals and how much money they will need to realize them. While there are clear tax advantages to an RSP, I encourage Canadians to consider their contributions relative to their goals, rather than simply funnelling some money into an RSP to increase their current after-tax income.”

Retirement is by far the most common reason why Canadian investors are currently saving or investing, identified by 68% of those surveyed. That figure jumps to 75% in Alberta and 73% in Atlantic Canada.

Canadians also said they are retiring in order to: build an emergency fund, travel, pay off their mortgage or other debts, renovate their homes and to pay for day-to-day living expenses.

Almost half (46%) of those surveyed concede that they have taken money out of their savings/investments to pay for something other than what they are actually saving for. Of those, 26% admit that they have taken money out of their savings/investments to cover day-to-day living expenses, withdrawing an average of $12,500.

“Withdrawing money for day-to-day living expenses, especially from a tax-sheltered RSP, should be a trigger that a person is living above their means and should re-evaluate their budget and their spending habits,” said Kellett.

In terms of the financial worries that Canadians have, 35% cited market volatility and instability as an investing concern in today’s markets.

Nationally, Quebec investors are most likely to be conservative. Forty-nine per cent indicate they are not comfortable with taking risks and are willing to take a lower return to have more security in their investments (compared to the national average of 37%).

As far as the high Canadian dollar goes, 57% say it has had no impact on their investment portfolio, while 28% say that the high Canadian dollar has actually had a very or somewhat positive impact on their investments.

The study also found that few Canadian investors (17%) have taken advantage of the changes to the foreign content rule and increased their level of investment outside of Canada.

“While the fact that 28% of Canadian investors say that the high dollar has had a positive impact on their portfolio could be good news, it could also be indicative of the fact that they have not taken full advantage of the legislated increase in foreign exposure,” said Kellett.

Survey respondents were household investment decision makers with savings or investments held either inside or outside of registered plans. A total of 1,097 investors participated in the online survey between December 27th, 2007 and January 3rd. Final data are weighted to be representative of Canadian investors by age within gender within region.