For the first time in three years, Canadians increased their contributions to RRSPs in the 2003 tax year, according to a new report from Statistics Canada. However, the number of contributors declined slightly.

In total, 5,948,000 taxfilers contributed nearly $27.6 billion to an RRSP in 2003. Contributions rose 1.8% from 2002, but the number of contributors was down 0.7%. Data for the report came from income tax returns filed in the spring of 2004.

The turnabout in contributions followed two years of declines and may have been the result of an increase in the maximum annual RRSP contribution limits, StatsCan said. The limits are based on 18% of the previous tax year’s earned income, to a fixed maximum ($14,500 in 2003, up from $13,500 in 2002), less any pension adjustment, plus any carry forward of unused room.

StatsCan says that 78% of those who filed taxes had RRSP contribution room. Yet, of these, only about 34% actually made contributions. And, the total contributions of $27.6 billion represented only about 9% of the total room available to these individuals.

Contributions rose in most provinces and territories, with the exception of Nova Scotia, Saskatchewan, Prince Edward Island and Nunavut.

The number of contributors fell slightly in all provinces and territories, except Northwest Territories and Newfoundland and Labrador.

Contributors in the Northwest Territories recorded the largest percentage increase in contributions at 5.0%, followed by those in New Brunswick (+4.3%) and Newfoundland and Labrador (+3.1%).

Nunavut continued to record the highest median contribution ($4,300) just as it has since coming into existence in 1999. Newfoundland and Labrador had the largest shift in median contribution. In 2003, the province’s median contribution was $2,200, up from $2,000 in 2002.

Women accounted for 38% of total RRSP contributions, down from 39% in 2002. Their median contribution remained virtually unchanged at $2,100.