Canadians who stepped back from the market in 2010 are feeling optimistic about their chances this year, according to a Bank of Montreal poll. One way they're expressing that optimism is by making plans to contribute to retirement savings plans, something many cut back on during the economic downturn.
According to the online poll, conducted by Harris/Decima for BMO, 79% of respondents either feel as optimistic about the financial markets or more so than last year.
Looking back at the RSP seasons in early 2009 and earlier this year, experts said they were characterized by worries about the stock market, which was dropping, there was a lot of concern about job losses, and people were worried about how much money they were spending.
Canadians started saving their money instead of spending it -- but they also weren't investing it, experts say.
Nearly three-quarters of Canadians — 72% — reported holding an RSP, and 59% make contributions over the course of the year, while 41% make a lump-sum payment, the poll found. Of the RSP holders, 80% say their contributions this year will be the same or higher than last.
The poll also had 66% saying they believe they're on the right path when it comes to saving for retirement, but at the same time, 70% reported not being completely familiar with the mix of investments in their RSP.
While people might have been familiar with the content of their RSPs when they opened the account, they may have forgotten since then. The topsy-turvy market has left a number of people afraid to open their statements to look.
In the midst of the economic downturn, a lot of people turned to cash to keep their money safe, but having no foothold in the market at all means they missed out when it rebounded.
