Like me, many Canadians do not have a pension plan at work. So, it is critical that we make annual contributions to our RRSPs. In this context, a report released today by Statistics Canada makes grim reading:

  • While, total contributions in 2004 increased 4.5% over 2003, the median contribution remained flat at $2600.

  • Of the 87% of tax filers eligible to contribute to their RRSP, only 30% actually did.

  • Tax filers used up only 8% of their eligible contribution room.

So, why don’t we save for our retirement? This article provides some answers, but there really is no substitute for discipline. We just have to save money for what could be a very long retirement.