TORONTO - RBC Economics says it expects RRSP contributions to keep declining through 2020, study on trends in Canada over the past 40 years.
RBC assistant chief economist Paul Ferley says the decrease will likely continue as the population ages over the next decade.
He says for three decades starting in the late 1960s, RRSP contributions grew steadily, but began falling in the late 1990s as "boomers got older and contributed less."
He says the trend doesn't necessarily mean Canadians aren't saving enough for retirement, but decreased savings can negatively impact the overall economy by making less funds available to finance investment activity.
RBC says the savings pattern for various age groups is quite distinct with those aged 34 and under the least likely to make contributions.
The biggest increase in contributions comes when people move into the 35-44 age group followed by a smaller rise in the 45-55 bracket. Ferley says contributions start to move lower after age 55 and the large number of aging boomers will likely be a key factor in overall RRSP contributions continuing to drop over the next 10 years.
