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The March 2 deadline for Registered Retirement Savings Plan (RRSP) contributions is upon us, though a recent study from financial services firm Edward Jones Canada suggests continued uncertainty on the subject among Atlantic Canadians, including regional business owners.
The study has received coverage mainly in a national context, with survey work suggesting about 41 per cent of Canadians at large plan to make RRSP contributions for the 2025 tax year, up from 39 per cent a year ago.
Atlantic Canada, however, shows a clear drop in intent to contribute, with only 38 per cent of respondents saying they plan to use the savings mechanism, down from 49 per cent last year.
A Nova Scotia-based financial advisor with Edward Jones Canada, Adrienne Power told Atlantic Business Magazine in an emailed response to questions that the numbers are really “no surprise” given general financial pressures at the moment. There was no single reason to explain the change but rather a mixture of persistent, possible concerns.
“Year-over-year in our study, Atlantic Canadians have identified financial challenges caused by insufficient income, high costs of living and debt repayment as the biggest barriers to saving for retirement,” Power stated.
The firm found 70 per cent of Canadians responding to survey questions reported negative feelings about RRSPs. The figure was 79 per cent for those surveyed in Atlantic Canada.
The suggestion from other results is at least some of that negative feeling is tied to overall knowledge on RRSPs, with many admitting uncertainty on how they really work.
“With 50 per cent of Atlantic Canadians admitting that they are confused about various aspects of RRSP contributions, their confusion is the highest in the country,” Power stated.
It’s a subject of personal finance, but the level of knowledge on RRSPs is a consideration when thinking about the many small business owners going without a workplace pension. Maximizing your RRSP contribution is commonly recommended (as it is here by BMO Nesbitt Burns) as a solid, first stop in retirement preparation.
There are other mechanisms for saving and many other points to consider in succession planning for retirement.
“This is where working with a financial advisor can help because it’s important to remember that an RRSP is an account, not a retirement plan,” Power said.
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