For the first time since 1999, more Canadians consider saving for retirement as their top financial priority, according to a survey released today by Royal Bank.

“This is a shift from previous years when Canadians said that keeping their heads ‘above water’ was their primary financial focus,” Royal Bank said in a release.

In the 15th annual survey, when Canadians were asked to identify their biggest financial concern right now, 38% cited saving for retirement ahead of trying to keep their heads above water, at 27%, and general savings for a rainy day, 25%.

“As the population ages, perhaps it’s no surprise that Canadians are placing more focus on saving and planning for their future life-phases,” Dave Richardson, vice-president of RBC Asset Management, said in a release.

“Many of us are in an age range that will be rounding that corner in the next five to 10 years. Fortunately, economic conditions are currently working in our favour and the benefits of lower interest rates and greater borrowing flexibility are translating into an increased capacity to concentrate on retirement savings.”

Twenty-eight per cent of those people polled said they were primarily concerned with making regular payments to reduce debt, a new option presented to respondents for the first time this year.

Those who currently don’t have debts – 44% – those that have a sophisticated understanding of their personal investments, 42%, and those who own a registered retirement savings plan, 46%, were the groups most likely to say that their top financial priority is saving for retirement.

Those over age 35 were likely to put retirement savings at the top of their financial priority list: 42%, versus 23% among those aged 18 to 34.

The average planned retirement savings contribution for the 2005 tax year was $5,700. That’s an increase of $140 over last year and nearly double the amount contributed in 1993.

At $61,656, the average current market value of RRSPs is down slightly from last year, but up substantially from 2001 when the average value sat at $50,662.

The Royal Bank study also notes that 66% of Canadians have an RRSP. That’s essentially unchanged from the 65% who had one last year and up nine% from 2002.

Thirty-two% said they plan to contribute their maximum allowable, down from 39% last year.

Regionally, people living in Alberta plan to contribute the most to their RRSPs, an average of $7,773.

They are followed by those in Ontario ($6,731), British Columbia ($5,792), Manitoba/Saskatchewan ($5,060), Atlantic Canada ($4,028) and Quebec ($3,911). The biggest contributions will be coming from Canadians aged 35 to 54 – $6,884 versus $4,403 among those 18 to 34 and $3,803 for those aged 55 and over.

The Ipsos Reid/RBC poll was conducted from Nov. 11 to 21, involving a randomly selected sample of 1,250 adult Canadians interviewed by telephone. With a sample of this size, the results are considered accurate to within 2.8 percentage points, 19 times out of 20.