KINDERSLEY, SASKATCHEWAN -- (Marketwire) -- 02/21/13 -- Over the past 10 years, only 21 per cent of Saskatchewan Pension Plan (SPP) members have waited until the last two weeks of RRSP season to make a contribution. That's an unusually low figure given that a 2013 Bank of Montreal study found that 49 per cent of Canadians who make an annual RRSP contribution do so in a lump sum at the very last minute.
For most companies selling RRSPs, February is their busiest time of year. Long lines at the banks and flooded customer service lines are the norm as Canadians worry about making their last-minute RRSP contributions. But the SPP isn't the norm.
SPP General Manager Katherine Strutt says the secret is creating a habit of saving for the future. "We provide our members with a variety of options that make it easy to contribute on a regular basis. Members have the choice of contributing over the phone, online, or directly from their bank account on a pre-authorized contribution schedule."
Strutt also attributes the regular saving habits of SPP members to a 'set and forget' plan. "Our members don't have to worry about monitoring their investments as our investment professionals actively manage their money on their behalf. Our members focus on making contributions and we focus on making their investments grow."
Over the SPP's 27-year history, that growth has averaged nearly eight per cent. In addition to competitive returns, members also benefit from low annual fees of about one per cent which compare favourably with mutual funds. Strutt also points out that by making regular contributions, members gain the added benefit of dollar-cost averaging.
According to the same Bank of Montreal study, 60 per cent of Canadians feel anxious about trying to find the money to save for retirement, but Strutt says RRSP season doesn't have to be a crazy last-minute scramble. "Even putting away $20 each week can add up to $1040 in a year. Automatic contributions through a pre-authorized contribution schedule can make forming that routine easier, but you have to form habits that work with your lifestyle."
Strutt also recognizes that Canadians have other priorities that often get in the way of saving for the future. "We all procrastinate. The good news is that this RRSP season, like all the others before it, the SPP is here to help."
About the SPP
Saskatchewan Pension Plan (SPP) is a voluntary, money purchase plan for people who want an easy way to accumulate funds for retirement. Founded in 1986, the SPP has grown to be the 28th-largest defined contribution plan in Canada with over $300 million in assets and 32,000 members.
Saskatchewan Pension Plan
Manager of Client Service
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