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RRSPs, RPPs Declining

The proportion of RRSP contributors has declined, says a fact sheet from the Office of the Superintendent of Financial Institutions (OSFI). It also shows that the proportion of employees covered by a registered pension plan (RPP) declined by two percentage points, from 40 per cent in 2001 to 38 per cent in 2011. The number of active RPP members as a percentage of the labour force dropped from 34 per cent in 2001 to 32 per cent in 2011. In the private sector, the RPP coverage dropped from 28 per cent in 2001 to 24 per cent in 2011. Coverage in the public sector also decreased slightly from 87 per cent to 86 per cent over the same period. Among those with a workplace pension in the private sector, the share in defined benefit plans has dropped from 74 per cent in 2001 to 51 per cent; whereas it has stayed stable at 94 per cent in the public sector. The absolute number of RRSP contributors dropped from 6.2 million to six million between 2001 and 2011. This means that the proportion of workers contributing to an RRSP decreased from 39 per cent to 32 per cent during that time. However, the number of taxpayers using tax free savings accounts (TFSAs) has increased every year since its inception in 2009. By the end of 2011, approximately 8.2 million Canadians had opened a TFSA compared to 6.7 million at the end of 2010 and 4.9 million at the end of 2009. The share of adult tax filers who are TFSA holders increased from 19 per cent in 2009 to 31 per cent in 2011.

Courtesy of Benefits and Pensions Monitor website News Alerts

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