RRSP and TFSA contributions have been increasing for five years

Despite the pandemic and other disruptive events in the economy, Quebecers have consistently increased the amount of their RRSP and TFSA contributions for retirement every year for the past five years.

According to data compiled by the Canada Revenue Agency (CRA) at the Journal’s request, Quebecers’ average annual contribution to their Registered Retirement Savings Plan (RRSP) has increased from $6,650 in 2017 to $8,880 in 2021. This is an annual contribution increase of 32.33% in one five years.

The same trend was observed in the rest of the country, but to a lesser extent in Quebec. Thus, the average annual contribution Canadians make to their RRSP will increase from $7,140 in 2017 to $8,920 in 2021, an increase of – the same amount – 25%.

More than $10,000 in TFSA

Quebecers’ contributions to their tax-free savings account (TFSA) have increased significantly over the past five years, including the 2020 and 2021 pandemic years. The average amount of their annual donations increased from $7,740 to $10,220 in 2017. 32% increase in 2021.

Meanwhile, across Canada, the average annual TFSA contribution increased from $7,510 in 2017 to $10,050 in 2021, according to the latest CRA data, as of October 1, 2022. Annual contribution increased by 33.82% in five years.

Record works

One thing is for sure, Quebecers have never put aside so much money in recent years. For 2021, we’re talking about $40 billion in total contributions to their RRSPs and TFSAs.

We’re talking about 16.5 billion (B$) in RRSPs in 2021, a 12.5% ​​increase compared to 14.7 B$ in RRSPs in 2020. Similarly, 23.5 B$ was deposited by Quebecers into the TFSA in 2021, an increase of 20.05. % compared to $19.63 billion in 2020.

Nationwide, Canadians’ savings will reach $167.88 billion in 2021. CRA-listed RRSP contributions hit a record $63.98 billion in 2021 (+13% from 2020) . For their part, TFSA contributions totaled $103.9 billion (+20.73% compared to 2020), also a record.

Average amount of RRSP contributions by tax year

Quebec Canada

2017 $6,650 $7,140

2018 6,850 7,250

2019 7,190 7,600

2020 8,080 8,080

2021 8,880 8,920

Source: Canada Revenue Agency

Average amount contributed to TFSA by tax year

Quebec Canada

2017 $7,740 $7,510

2018 8,050 7,810

2019 8,440 8,160

2020 9,300 9,160

2021 10,220 10,050

Source: Canada Revenue Agency