The Daily — Registered retirement savings plan contributions, 2019 (2024)

Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please "contact us" to request a format other than those available.

This page has been archived on the Web.

Released:2021-03-09

Just over5.9million Canadians contributed to a registered retirement savings plan (RRSP) in2019, down1.5% from a year earlier. However, the amount they contributed rose1.8% to $44.3billion for a median contribution of $3,260. Contribution figures in this release could be affected by changes in tax rules specific to the2019tax year which permitted later tax filing because of the COVID-19pandemic (please see "Note to readers" for more information).

Data on RRSPs are derived from the preliminary version of the T1Family File. While data from this release do not yet reflect the potential impact of the COVID-19pandemic on RRSP contributions, they do provide useful insight into the economic well-being of Canadians prior to the pandemic, and could serve as a baseline for measuring the impact of the pandemic on various aspects of the economy in the future.

Registered retirement savings plan contributions rise in most provinces and territories

RRSP contributions rose in seven provinces and two territories in2019, led by the Northwest Territories (+4.9%), Quebec (+4.3%) and Yukon (+3.1%). The largest declines were in Nova Scotia (-15.1%), Nunavut (-5.7%) and Saskatchewan (-4.7%).

The large decline in Nova Scotia came on the heels of a23.4% increase in2018, which was mainly attributable to a one-time payout for long service in certain parts of the provincial public sector. These payouts were considered wages, but employees with available room could reduce their tax rate by contributing to their RRSPs. Despite the large drop in2019, RRSP contributions in Nova Scotia ($785million) remained above2017levels ($749million).

Nationally, the median contribution in2019was $3,260, up4.2% from a year earlier. Median contributions ranged from $3,900in Nunavut to $2,400in Manitoba, and rose at the fastest pace in the Northwest Territories (+6.3% to $3,520) and Ontario (+6.1% to $3,500).

Although total (+1.1%) and median (+2.0%) RRSP contributions increased in Alberta in2019, they rose at a slower pace compared with the other large provinces (Quebec, Ontario and British Columbia), reflecting in part the slumping energy sector following the2014collapse in oil prices.

Vancouver and Toronto have the highest median contributions among the census metropolitan areas

Vancouver ($4,300) and Toronto ($4,200) had the highest median RRSP contributions among the census metropolitan areas (CMAs) in2019, followed by Calgary ($4,090) and St John's ($4,000). The CMAs of Belleville and Winnipeg had the lowest median contributions (both at $2,400).

Tax filers in the CMA of Québec (30.1%) were the most likely to contribute to an RRSP in2019, followed by those in Calgary (26.6%) and Montréal (26.0%). Tax filers in Abbotsford–Mission (17.2%), Belleville (17.6%) and St. Catharines–Niagara (17.7%) were the least likely to contribute.

Income levels are a clear factor in RRSP contribution rates

Over half (53.8%) of tax filers with more than $80,000in total income contributed to an RRSP in2019. This may reflect a greater opportunity for high earners to save, but it also stems from the tax incentives built into the RRSP–the objective is to reduce high income tax rates by contributing in high-income years and hoping to withdraw at a lower tax rate in the future.

Middle-aged workers are the most likely to contribute to an RRSP

Tax filers aged45to54were the most likely to contribute to RRSPs; over one-third (36.3%) did so in2019. Fewer contributed in the35to44age group (32.6%) and in the55to64age group (30.7%).

Tax filers in younger age groups were less likely to contribute to RRSPs, as other spending needs were competing for resources, and the tax benefits of contributing to RRSPs may have been reduced by having a lower income. Almost one in four tax filers (23.0%) aged25to34contributed to an RRSP in2019.

Products

The document "Technical Reference Guide for the Preliminary Estimates from the T1Family File (T1FF)" (Catalogue number11260001) presents information about the methodology, concepts and quality for the data available in this release.

Data on RRSP contributors (Catalogue number17C0006, various prices) are now available for Canada, the provinces and territories, economic regions, census divisions, census metropolitan areas, census agglomerations, census tracts, and postal-based geographies. These custom services are available upon request. A table associated with this release is available for free on the Statistics Canada website for Canada, the provinces and territories, census metropolitan areas, and census agglomerations.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).