Apr 7: BEST FROM THE BLOGOSPHERE

April 7, 2025

Canadians saving less, sharp drop in RRSP contributions: Edward Jones

Only 39 per cent of Canadians planned to contribute to their registered retirement savings plans (RRSPs) for the 2024 tax year, a sharp drop of 10 per cent from the previous year.

“Canadians’ ability to save for retirement is taking a significant hit,” begins a media release from Edward Jones Canada, discussing their most recent polling numbers.

The release suggests that “high living costs and debt burdens” are what’s preventing Canadians from saving.

The research, the release continues, found that just 15 per cent of Canadians planned to max out their RRSP contributions for 2024, “a drop of six points from the previous year.” And, the release adds, while 60 per cent of younger Canadians (aged 18 to 34) planned to contribute for the 2023 tax year, only 41 per cent planned to make contributions for 2024.

Worse still, Edward Jones Canada reports, “one in 10 Canadians indicate they cannot afford to invest in their RRSP at all.”

So what’s behind this retreat from saving?

“When it comes to the single biggest barrier Canadians face in saving for retirement, more than one-third (39 per cent) point to financial challenges caused by insufficient income, high cost of living and debt repayment,” the release points out.

“Amid economic uncertainty, it’s clear that Canadians are prioritizing their current expenses and putting retirement planning on the back burner” states Julie Petrera, Senior Strategist, Client Needs at Edward Jones, in the release. “And despite the crucial role a well-defined plan plays in overcoming financial barriers, many Canadians admit to not having a specific retirement savings strategy, underscoring a need for comprehensive financial guidance that balances short- and long-term financial priorities.”

No money to save, and no plan – that’s a problem. Let’s read on.

Just 26 per cent of those surveyed said they faced no savings “barriers,” the release continues, and “are on track to saving for their ideal retirement.”

There was, Edward Jones found, variations on this theme by age band.

Just 15 per cent of Millennials and 10 per cent of Gen Z respondents agree they have no barriers and are on track, the release notes. For younger Canadians barriers to saving also include “not knowing where to start without trusted financial advice (14 per cent of Millennials, 15 per cent of Gen Z), or that retirement feels too distant to plan for now (15 per cent of Millennials, 21 per cent of Gen Z),” the media release notes.

The release also notes that Canadians “recognize the importance of being financially resilient in retirement,” and that:

• 84 per cent say they will account for inflation while retired
• 84 per cent “want to be able to maintain their current lifestyle” in retirement
• 83 per cent agree healthcare in retirement “is an important priority”

“When it comes to determining how much to save for retirement, an alarming one-fifth (20 per cent) of Canadians report not having a specific strategy. Approximately half (51 per cent) say they rely on their income and budget to dictate their contribution, while 22 per cent rely on advice from financial advisors. Looking at age cohorts, Gen Z shows a distinct reliance on family or friends for guidance (28 per cent),” the release notes.

Final word to Julie Petrera, who states “at Edward Jones, we recognize that money is a thing, but it’s not everything. That’s why we work with clients to understand all of their unique priorities—both immediate and long-term—and then help them establish a plan to address all their goals.”

If there’s an overall takeaway from this research, it would seem that making saving a priority despite all the hurdles the economy can put in your way is a strategy worth considering. Many experts say you should make your savings automatic, so that the dough is in the piggy bank before you have a chance to spend it.

That sort of automated savings is easily available through the Saskatchewan Pension Plan. SPP members can set up automatic, pre-authorized contributions to SPP from their bank accounts; many make these coincide with pay day. You’re then paying your future self first and leaving SPP to do the heavy lifting of growing your savings through low-cost professional investing in a pooled fund.

Check out SPP today!

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Edward Jones

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