A main reason given is that as the country ages, a smaller proportion of people are in the peak-contribution age range of 45 to 54. Another factor cited is that more of our money is going toward housing, and real estate investments.
The report noted how contributions to RRSPs had been on a steady rise from 1968 to 1997, before the downward trend began. Its records show that RRSP contributions as a share of personal disposable income peaked at 5% in 1997. That had fallen to 3.3% in 2010 and was anticipated to have gone as low as 2.9% last year.
At this rate, economists at RBC Economics see the RRSP-to-disposable-income ratio going below 2% by 2017. It hasn’t been less than 2% since 1975.