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40% Canadians withdraw from RSPs - Save your money!
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According to Scotiabank, about forty per cent of Canadians have made an average of three withdrawals from their RSPs. The study also found that nearly half of those who have made at least one withdrawal do not intend on paying it back. This further proves the inability for North Americans to save their money. Albeit, sometimes you withdraw for other reasons like buying a house, the fact remains there is an allergy to saving money.
Among Canadians who have taken money out of their RSP, they have withdrawn an average of $18,000. The top three reasons investors cited for withdrawing the money were to buy, build or get a mortgage for a new home (37 per cent), to pay down debt (24 per cent), and to cover day-to-day living expenses (20 per cent.) Established investors tend to be the most likely to withdraw money from their RSPs.
In the event that Canadians run out of retirement income, 42 per cent plan on getting a part-time job to make ends meet. What stats aren't here are the actual number, which is probably closer to 60%. Regionally, investors in Quebec (50 per cent) are more likely than investors in Ontario (39 per cent) and the Prairies (34 per cent) to get a part-time job.
Among non-retired investors, 53 per cent are concerned that they will outlive their retirement money and 30 per cent admit that they have done very little planning for their retirement. The number of respondents who are worried about outliving their retirement income drops significantly among retired investors with only 38 per cent expressing concern. However 29 per cent admit that they have done very little planning for their retirement.
The Retirement Study was conducted for Scotiabank using Decima's online panel. Respondents were sole or shared household financial decision makers, aged 39 years and older with less than $50,000 in investable assets. A totalof 1,200 interviews were completed between May 12 and 29, 2006. Final data are weighted by age and gender within region and are considered accurate to within +/- 2.8 percentage points, 19 times out of 20.
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econmod
Broker
Jan 13, 2007, 6:39 PM
Post #1 of 1
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