RESP effectiveness hindered by lack of awareness, study finds

July 12, 2010

While refinements to Canada's Registered Education Savings Plan have made it an effective savings vehicle, Canadians are not taking full advantage of the RESP due to poor awareness and understanding, according to research by the Certified General Accountants Association of Canada. Because the savings plan comprises several components, most people lack a clear understanding of how the program works and what its benefits are, and this is particularly true among lower income Canadians, says one the paper's author. The report also notes that rising tuition fees are countering the benefits of the RESP and they should be addressed directly. CGA-Canada News Release | Read the report