Episode #22 - Two Minutes to a Better RSP: How Does Your RSP Compare With Those of Other Canadians?
Announcer: Welcome to The Money Clip podcast series from The Vault, Scotiabank’s online guide to helping Canadians get ahead financially. Listen in to gain a deeper understanding of your personal finances and find out how a few small changes to the way you manage your money can make a big difference.Michael Seaton: Thank you for joining us on The Money Clip podcast series from Scotiabank. I’m your host, Michael Seaton, and with The Money Clip we provide Canadians with a deeper understanding of personal finance and money-related matters. This is our series titled “Two Minutes to a Better RSP”. We hope to put you on the path to maximize your retirement savings plan as the deadline approaches. This is our sixteenth episode – and our last in the RSP series – and the subject today is how your RSP compares to other Canadians. In our Two Minutes to a Better RSP podcast series, we’ve been providing easy to understand tips to help you get the most of your RSP. We’ve looked at how to build a diversified portfolio, we’ve looked at the need for global investments, and we’ve also looked at contributing on a regular basis. Now, your RSP is unique to you and to your particular situation. For instance, if you plan to travel a lot during retirement, you’ll need to save more than someone who wants to live a more modest retirement lifestyle. But it’s also interesting to look at how you compare with other Canadians. Did you know that two thirds of all RSP contributions are made in the three weeks right before the deadline? So if you haven’t yet made your contribution, you’re not alone. And if you want to avoid the scramble next year, listen to our podcast on contributing on a regular basis. If you want to know how much you’re contributing this year compared to the average Canadian, the latest data shows that the average annual RSP contribution by household was $6,400. And if you wonder where most of the contributions go, mutual funds represent the most popular RSP investment at 57% of all RSP assets. If you want to know how much your family is saving compared to other Canadians, the median value of a Canadian family’s RSP is at $45,000. In other words, of the 56% of Canadian families who have an RSP, one half had more than $45,000 and one half had less. And, finally, some food for thought: more than half of all working Canadians are concerned about outliving their savings. If you’re one of them, take the time to listen to some of our Two Minutes to a Better RSP podcasts, and then speak to your financial advisor about how to get the most from your RSP.
This has been the last in our Two Minutes to a Better RSP podcast series, and we thank you very much for listening.
Announcer: Do you have any thoughts on today’s show? We’d love for you to get involved and become part of the conversation. Send us your questions, comments or money management tips so that we can address them in future podcasts. Our email address is themoneyclip@scotiabank.com and our call-in number is 1-866-652-5333. The Money Clip is brought to you by The Vault at Scotiabank. Be sure to tune in again next time.