This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Better Late Than Never: 60% Of Canadians Still Need To Make Their Last-minute RRSP Contribution

Stocks in this article: TD

TORONTO, Feb. 19, 2013 /CNW/ - Despite having an entire year to contribute to their RRSPs, if past behaviour is any indication, the majority of Canadians (60%) who will contribute to their RRSP this year will do so in the next two weeks. Many will leave it right down to the wire for the March 1 deadline according to the TD RRSP Deadline Poll.

"Our research shows that 59% of Canadians contribute annually to an RRSP. Those contributions offer tax benefits and are one of the most important steps you can take to secure your financial future," says Kim Parlee, Vice President, TD Wealth Management. "Making regular contributions throughout the year, every year, is the most effective way to grow your retirement nest egg."

Below, Parlee addresses three reasons Canadians say they wait until the last minute to contribute and offers advice on how to overcome these common misconceptions to make the most of their RRSP contributions in 2013.

Misconception #1: "I don't have enough money throughout the year to contribute."

Of Canadians who wait until the last minute, 44% said they didn't feel they had enough money to contribute to their RRSP throughout the year. Twelve percent said they meant to set up regular automatic transfers to their RRSP, but didn't get around to it.

"Creating an automatic monthly RRSP contribution is easy - and then you're set for the rest of the year.  Your money is moved to your retirement savings before you have a chance to spend it on other things," says Parlee. "Contributing smaller amounts throughout the year won't have a significant impact on your lifestyle and you'll avoid a last-minute scramble to come up with a lump-sum at the end of the year."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,707.09 +245.77 1.49%
S&P 500 1,960.17 +33.06 1.72%
NASDAQ 4,469.8290 +86.9820 1.98%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs