A Money Coach in Canada

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coinstack.jpgI’m pinching these factoids directly off Canadian Capitalist who always has good things to say about money stuff – as varied as a discussion on QuickTax software to how the currency fluctuations hit or support our investment portfolio.

Here’s his quick-and-dirty factoid sheet about us Canadians and how we do (0r don’t, most of us) contribute to our RRSPs.

  1. Deadline for a contribution for the 2007 year: February 29, 2008
  2. Maximum contribution amount for 2007: $19,000
  3. Percentage of tax filers eligible to contribute to a RRSP*: 88%
  4. Percentage of eligible tax payers making a contribution*: 31%
  5. Percentage of contribution room used up*: 7%
  6. Median National contribution*: $2,730
  7. Average National contribution*: $5,221

In short, the vast majority of us don’t contribute at all; and of those who do, the vast majority don’t max out.

Why do you think that is?

And who do you think ARE maxing out – the really well off, or the middle-class frugal (ie manage to save $19K year)?

(for the record, this money coach has never managed to max out.   It’s a goal, though, within the next 3 yrs)

About the Author

Imagine if Canadians were known for being all over their money. Engaged. Proactive. Getting out of debt. Savvy. Saving. Generous. Nancy wants to help. Nancy started her own journey with money over 15 years ago, and formed her company “Your Money by Design” in 2004 to help others along the same path. It’s not the usual financial advising/investment stuff. It’s about taking control of day-to-day finances –managing monthly cashflow effectively, spending appropriately, getting out of debt, saving. If you're ready to take control over your finances, pop by her business site, YourMoneybyDesign.com


  1. I suspect many people think that contributions are only done in Jan-Feb when people are paying off holiday bills so they lack money at that time to do it. Then they forget about it.

    Retirement scares people so they avoid it and anything to do with it.

    Just my pet theories.


    Feb 12, 2008
  2. We make a small monthly contribution each, but it is NOWHERE near maxing out- that is many years down the road. I am closer to the median contribution than the average. I amazed sometimes how people my age (mid-30’s) just really aren’t thinking about retirement yet. My brother actually admitted last year he didn’t know what an RRSP was (gasp! however, it just means he hadn’t been paying attention since our parents have always invested in RRSPs and talked about it). On the other hand, I have a very organized friend who, like you, is on the road to maxing out, and I admire her diligence in her monthly contributions because she has decided to sacrifice in order to save for what is important to her, which is retirement.


    Feb 12, 2008
  3. @thickenmywallet – I wonder what would happen if we made ‘rrsp’ season occur in, say, March or April instead? (I know it’s inextricably linked to tax filing, so it’s just a thought experiment). Re: thinking about retirement – it could be avoiding thinking of it, or just that is simply doesn’t seem real. I know I still can’t fully grasp that fact that in another 25 years or so I will be ‘retired’! So even though I do prepare, it’s hard to feel motivated.

    @woolywoman – a cheer to you for resisting ‘the man’ and making up your own mind, after careful thinking, about what is right for you, now, in your set of (wonderful) circumstances.


    Feb 13, 2008

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