Profiling RRSP contributors

Organization

Statistics Canada

Published

2003

Summary

Young people, individuals with high incomes and those in legal marriages (as opposed to common-law relationships) are more likely to contribute to registered retirement savings plans (RRSPs), according to a new study.

"Profiling RRSP contributors," published today in the online edition of Perspectives on labour and income, examines factors that make one person more likely than another to contribute to an RRSP. Using 1998 tax data, the article looks at personal and family characteristics associated with RRSP participation.

The study, which used data from income tax returns to create models for analysis, showed that the likelihood of contributing decreases with age, particularly among single people. As age increases from 30 to 50, the likelihood of contributing declines by almost 10 percentage points.

The study also showed that the higher the income, the more likely it is that an individual will contribute to an RRSP. High income provides not only the means to contribute, but also the incentive, since those with high income bear the heaviest tax burdens.

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Source: Consumer Policy Research Database