Despite the pandemic and other disruptive events in the economy, Quebecers have, year after year over the past five years, increased the amount of their RRSP and retirement TFSA contributions.
According to data compiled by the Canada Revenue Agency (CRA), as requested by the Journal, the average annual contribution of Quebecers to a Registered Retirement Savings Plan (RRSP) has increased from $6,650 in 2017 to $8,880 in 2021. Increased contribution annual rate of 32.33% in five years.
The same trend is observed in the rest of the country, though to a lesser extent, in Quebec. Thus, the average annual contribution of Canadians to their RRSP has increased from $7,140 in 2017 to $8,920 in 2021, an increase of – all the same – 25%.
Over $10,000 in TFSA
Quebecers’ contributions to a tax-free savings account (TFSA) have also increased significantly over the past five years, including during the pandemic years in 2020 and 2021. The average amount of their annual contributions has thus increased from $7,740 in 2017 to $10,220. In 2021, a jump of 32%.
Meanwhile, across Canada, the average annual TFSA contribution increased from $7,510 in 2017 to $10,050 in 2021, according to the most recent CRA data, as of Oct. 1, 2022. Annual contribution increase of 33.82% over five years Years.
Record contributions
One thing is for sure, Quebecers won’t be setting aside a lot of money in recent years. For 2021, we’re talking about a total of $40 billion in contributions to RRSPs and TFSAs.
We are talking about $16.5 billion ($1 billion) in RRSPs in 2021, an increase of 12.5% compared to $14.7 billion in RRSPs in 2020. Similarly, $23.5 billion was deposited by Quebec in the TFSA in 2021, an increase of 20.05% compared to $19.63 billion in 2020.
Across the country, Canadians’ savings reached $167.88 billion in 2021. CRA-listed RRSP contributions reached a record high of $63.98 billion in 2021 (+13% from 2020). For its part, TFSA contributions have reached a total of $103.9 billion (+20.73% compared to 2020), which is also a record.
Average amount of RRSP contributions, by tax year
Quebec, Canada
2017 $6,650 $7,140
2018 6850 7250
2019 7,190 7,600
2020 8,080 8,080
2021 8880 8920
Source: Canada Revenue Agency
The average amount contributed to a TFSA, by tax year
Quebec, Canada
2017 $7,740 $7,510
2018 8,050 7,810
2019 8440 8160
2020 9,300 9,160
2021 10,220 10,050
Source: Canada Revenue Agency
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