When it comes to saving for retirement, many Canadians are not taking advantage of a Registered Retirement Savings Plan (RRSP). Results from a new study commissioned by H&R Block show only 33 per cent of Canadians are planning to contribute to a RRSP before the contribution deadline.
“While the number of Canadians contributing to RRSPs has increased since last year, 33 per cent is still very low,” says Lisa Gittens, H&R Block senior tax professional. “Canadians should try and take advantage of RRSPs each year where possible to help them achieve their financial goals, maximize refunds and prepare for the future.”
There are many reasons why Canadians may not be taking advantage of RRSP contributions, including competing financial demands that make it difficult to put money aside. Yet, Canadians should know that every penny contributed to a RRSP is tax deductible.
The impending contribution deadline (March 1) is a chance for Canadians to review their finances and determine how much they can contribute to maximize their refund or minimize what they owe in income tax. To build up RRSP eligibility, Canadians must file a tax return, even if they don’t owe any taxes.
For information, visit www.hrblock.ca.