RBC debunks common misconceptions about RRSP saving and investing

RBC debunks common misconceptions about RRSP saving and investing 
Average Canadian starts saving for retirement at age 32 
TORONTO, Feb. 20, 2013 /CNW/ - With the Registered Retirement Savings Plan 
(RRSP) contribution deadline for the 2012 tax year approaching, RBC provides 
clarity regarding RRSP myths and encourages Canadians to start saving for 
retirement sooner. According to the 23(rd) Annual RBC RRSP Poll, on average, 
Canadians say they started saving for their retirement at age 32 and 
one-quarter of Canadians (26 per cent) have not started to save for retirement. 
"There are common misconceptions around savings and investing that may be 
keeping Canadians on the sidelines," said Jason Round, head, Financial 
Planning Support, RBC Financial Planning. "The first step is getting in the 
game, it's important to start no matter the amount you have to save and the 
earlier you start the better." 
Canadians are getting the message about saving for retirement through regular 
contributions. Among those who have RRSPs and who have contributed or plan to 
contribute for the 2012 tax year, six-in-10 say they make regular 
contributions. Regular contribution plans are the top means of contributing to 
RRSPs with four-in-10 (37 per cent) Canadian RRSP holders between the ages of 
18 to 54 doing so. 
Round debunks the following misconceptions when it comes to RRSP saving and 
1. Myth: Be wary of market volatility and delay starting up an 

     automatic plan given market downturns.
     Reality: Automatic contribution plans help create a regular
     savings habit and take the guesswork out of timing of the market.

  2. Myth: I need to have a sizable lump sum to be able to invest.
     Reality: Through regular savings and the benefit of compounding, a
     little can turn into a lot. Set up manageable pre-authorized
     contributions that line up with your pay day and watch your
     savings grow.

  3. Myth: It's easier to catch up on RRSP savings when you are older
     and more established.
     Reality: While you may be more established when older, you may
     also have more financial responsibility (mortgage, children).
     Contributing early and regularly allows you to apply a 'pay
     yourself first' approach to managing your finances and the added
     benefit of compounding

  4. Myth: Investing is complicated.
     Reality: There is an investment approach for everyone. It can be
     as simple or complex as you like; mutual funds offer professional
     investment management, portfolio solutions take care of the asset
     allocation and do-it-yourself brokerages offer a range of
     investment products. A financial advisor can help you find
     investment solutions that work for you.

  5. Myth: An RRSP only benefits those in the top tax bracket.
     Reality: RRSPs are about more than a tax refund. They allow you to
     save for the future on a tax-sheltered basis and can include a
     variety of investments. There are other savings vehicles, like a
     Tax-Free Savings Account, that you may consider depending on your
     own circumstances and goals for the future.

About RBC's financial planning advice, resources and interactive tools
The RBC Advice Centre offers free online advice, resources and tools regarding 
retirement and estate planning including RRSPs, the RSP-Matic® Savings 
Calculator and updates on the federal government's RRSP First Time Home 
Buyers' Plan. In addition, RBC's myFinanceTracker, a comprehensive online 
financial management tool, offers all personal RBC online banking clients the 
ability, at no cost, to create a set budget and track their spending habits 
and to access H&R Block tax-related apps in the new myTax Centre, to help 
manage and plan their taxes.

About the 23(rd) Annual RBC RRSP Poll
The 23(rd) Annual RBC RRSP poll was conducted by Ipsos Reid between October 24 
and November 27, 2012 via a random sample of 1,225 Canadian adults in the 
general population (aged 18 and over). The results are based on samples where 
quota sampling and weighting are employed to balance demographics and ensure 
that the sample's composition reflects that of the actual population according 
to Census data. Quota samples with weighting from the Ipsos online panel 
provide results that are intended to approximate a probability sample. A 
weighted probability sample of 1,225 Canadian respondents, with 100 per cent 
response rate, would have an estimated margin of error of ±3 per cent, 19 
times out of 20.

Media contacts: Suzanne Willers, RBC, 416 974-2727 Kate Yurincich, RBC, 416 


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CO: RBC Royal Bank
ST: Ontario

-0- Feb/20/2013 10:00 GMT

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