Paul Martin’s Business Update – January 28th, 2015
With RSP season descending upon us, we’ll be hearing plenty about the issue of retirement planning and, more specifically, being able to pay for retirement.
One example is a recent survey from RBC Royal Bank which asked Canadians at both ends of the age spectrum for their views on retirement finances. They found that young people believe they ‘owe’ their parents a solid retirement. On the other side of the equation, an even larger percentage of boomers said they wanted nothing to do that idea…they want to support their own retirement plans. Plus they believe their children face tougher financial issues than they did.
This dichotomy brought the survey around to the question of RSPs and how people of various ages look at them as a tool for funding retirement living. The number of young people who have begun saving via the RSP vehicle is the lowest in a decade, roughly one-half the number of boomers who have done so. But only two-thirds of boomers have an RSP so it appears there is some room to grow on this count.