Registered retirement savings plan contributions

The number of Canadians who contributed to a registered retirement savings plan (RRSP), as well as the amount of their contributions, have both dropped sharply for the second straight year.

In total, 5,991,440 taxfilers contributed just under $27.1 billion to an RRSP in the 2002 tax year. The number of contributors was down 4.0% from 2001, while the amount of contributions fell 4.8%.

These declines occurred despite a 2% increase in the number of taxfilers with room, and despite stability in median employment income. Median employment income in 2002 was $24,400, down a slight 0.5% from the previous year, after adjusting for inflation.

Both contributors and contributions reached record levels in 2000. During that year, 6,291,170 taxfilers contributed almost $29.3 billion.

The median RRSP contribution in 2002 declined $100 from $2,600 in 2001 to $2,500. The median is the point at which half of taxfilers are below and half are above.

The median contribution fell in all provinces and territories except Prince Edward Island, New Brunswick and Quebec, where it remained the same.

RRSP participation rates among men and women, and across age groups, shifted slightly. Although the number of women who contributed declined, they accounted for 46% of contributors, up from 45% in 2001. Their median contribution of $2,100 was down from $2,200 in 2001.

The number of contributors fell in all age groups except those aged 55 to 64. However, even in this age group, the average contribution declined.

To be eligible to contribute to an RRSP, a taxfiler must have either new room as a result of qualifying income from the previous year, generally employment income, or unused room from earlier years.

For the 2002 tax year, 80% of those who filed taxes had room. Of these, about 34% made contributions.

The contributions in 2002 represented only about 9% of the total room available to those who filed taxes in 2002, and less than half of the new room that was generated in 2002.

Note: Data came from income tax returns filed in the spring of 2003.

Definitions, data sources and methods: survey number 4106.

The databanks RRSP contributors (17C0006, various prices), RRSP contribution limit (17C0011, various prices) and Canadian taxfilers (17C0010, various prices) are available for Canada, the provinces and territories, cities, towns, census metropolitan areas, census divisions, federal electoral districts and areas as small as forward sortation areas (the first three characters of the postal code), and letter carrier routes.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Client Services (1-866-652-8443; 613-951-9720; fax: 1-866-652-8444 or 613-951-4745; saadinfo@statcan.gc.ca), Small Area and Administrative Data Division.