There are only a few days left to contribute to their RRSP or even their TFSA and in the current economic context, some people are forced to make choices.
“Let’s say that we will abstain this year”, “everything is expensive, everything has increased, so no, we are not thinking regarding that for the moment”, indicated Rimouskois to TVA Nouvelles.
The cost of living, which remains higher and the successive increases in interest rates, prevent some savers from investing in their retirement.
“We need all our money right now to make ends meet,” a lady told TVA Nouvelles.
“We see that people who contributed the smallest amounts of 20, 30, 50 dollars per month, let’s say that it is an amount which, because of inflation, has been cut”, underlined Sébastien Leblanc, consultant in Investments and Senior Wealth Management Advisor at National Bank.
In some banking institutions, we see that the contributions are still on the rise.
“As in the last five years, we notice an increase in contributions, even if the period is less easy,” said Mr. Leblanc.
Economists and advisors agree that the effects of interest rates are not yet fully felt.
“There are over 70% of borrowers who have fixed rate mortgages, so not everyone is feeling the effect of interest rates, so can afford dues like in recent years. years,” he explained.
Due to the uncertainty in the market, investors have many questions.
“Yields on the financial markets have been heavily penalized, so for savers, we see that there is a lot of uncertainty at the moment,” said Lorenzo Tessier-Moreau, senior economist at Desjardins.
However, players in the financial community agree that regardless of the difficulties of the moment, it is always appropriate to save.
“For financial health, for retirement planning, the question is more to choose between something more risky or more secure,” said Mr. Tessier-Moreau.
“In times of historical uncertainty, now is a good time to invest. Without putting on rose-colored glasses, we can think that eventually there will be a reversal of the trend, but let’s be careful all the same,” concluded Mr. Leblanc.
March 1 is the deadline to contribute to an RRSP or TFSA for the 2022 tax year.
