One in 10 investors polled by Edward Jones said they were considering other options for investing, such as TFSAs, First Home Savings Accounts, non-registered accounts and real estate.
A separate survey from CIBC found investors favouring TFSAs this year. Over half (53%) of investors with both TFSA and RRSP accounts said that a TFSA contribution made more sense for them right now because of the tax-free withdrawals, according to the CIBC poll released Monday.
“The preference for short-term liquidity and stable returns suggests many Canadians are focused on today and less so on long-term accumulation of wealth or retirement,” said Carissa Lucreziano, vice-president of financial and investment advice at CIBC, in a release.
A BMO survey found that higher interest rates and inflationary pressures are cutting into RRSP contributions, with 63% citing those factors as negatively affecting their ability to save for retirement. Average RRSP account holdings in 2023 were $113,070 compared to $144,613 last year and $112,295 in 2020, according to BMO.
However, average RRSP contributions increased to $6,512 in 2023, up from $5,753 in 2022, and 62% of respondents said they intended to contribute to RRSPs this year despite economic headwinds.
The economic environment has affected Canadians of all ages. Almost half of boomers (44%) said they’re working longer than planned to save more for retirement, according to BMO, and 38% of Gen Z said they’re putting off saving for retirement entirely.
The online Edward Jones poll was conducted by Pollara Strategic Insights between Jan. 24-26 with the participation of 1,699 Canadian adults. The CIBC poll was conducted by Maru Public Opinion between Jan. 31-Feb. 1 with the participation of 1,109 Canadian adults. The BMO survey was conducted by Pollara Strategic Insights between Nov. 3-8 with the participation of 1,510 Canadian adults.