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

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."

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