Statistics Canada reports that fewer Canadians contributed less money to their registered retirement savings plans in 2001. However, the declines came on the heels of record-high levels for both contributions and contributors in 2000.

In total, 6,241,050 taxfilers contributed just over $28.4 billion in 2001. In 2000, 6,291,170 taxfilers had contributed almost $29.3 billion. Data came from income tax returns filed in the spring of 2002. The median contribution declined from $2,700 in 2000 to $2,600 in 2001.

For the tax year 2001, 83% of those who filed taxes had unused room. Of these, about 34% made contributions. However, the total contributions of $28.4 billion represented only about 9% of the total room available to all filers.

Contributions declined in all provinces and territories except for Northwest Territories (+4.1%) and Nunavut (+1.9%). The largest declines were in the eastern provinces. The number of contributors also declined, except for small increases in Quebec, Alberta, Northwest Territories and Nunavut. About 36% of those with room in Alberta made contributions, as did 35% in Ontario and 34% in Quebec, Manitoba and British Columbia; these were the highest among the provinces and territories.

The decline in contributions and contributors occurred even though employment income increased slightly in 2000, when employment income determined new room for 2001 contributions. Median employment income in 2000 was $23,905, up 0.4% after adjusting for inflation.

In 2000, large pay equity payments were made to federal government employees and this probably resulted in increases in RRSP contributions in that year. Because these were one-time payments, this may also explain some of the decline in contributors and amounts contributed for tax year 2001.