The 22nd Annual RBC RRSP Poll finds 43 per cent of Canadians between the ages of 18 and 34 now hold RRSPs. Head of Financial Planning Support for RBC Jason Rounds tells us that is an improvement over 2010 when the number of younger Canadians holding RRSPs dropped to its lowest point in almost a decade (39%).

"It also seems there is a little bit more balancing of priorities," says Rounds. "When we saw that decline in the interest in looking at longer term goals like retirement, it may have been a question of people prioritizing day to day things like paying down your debt and setting yourself up with an emergency reserve."

What has slipped significantly for the 2011 tax year is the percentage of younger Canadians who plan to contribute the maximum to their RRSPs. In the 2010 tax year, young Canadians were the most likely age-group to maximize their RRSP contribution (33 per cent); for the 2011 tax year, they are the least likely to do so at 16 per cent (compared to 25 per cent of all Canadians).

Rounds notes young Canadians' average contribution expectation for the 2011 tax year is $3,191, which is less than the Canadian average of $4,715. He says this really isn't surprising, adding it comes back to that question of balance as well as a better understanding of the investment vehicles available to them.

"In addition to RRSPs, the Tax Free Savings account is a great investment vehicle, and I think more and more younger Canadians are tweaking onto that and understanding that there's maybe an alternative here," says Rounds. "The best case is to balance contributions between to the two, but understand there is another option that might be a more appropriate vehicle for them to invest in."

The survey also looked at how younger Canadians are ranking their financial priorities. Number one was home ownership, followed by regular payments to reduce or eliminate debt, and general savings for a rainy day. Rounds tells us retirement is now fourth on the list, up from seventh the previous year. He notes, for younger Canadians especially, there are a number of priorities pulling on them at any given time.

"It's not a question of saying I'm only going to focus exclusively on that goal forty years down the road, or I'm only going to focus on the goal of home ownership three years down the road," says Rounds. "It's striking a balance between those different options, and understanding there's different ways to accomplish those different things."

Rounds says it's critical for younger Canadians to take a step back, and look at the entire big picture.

"I think the tendency sometimes, and this isn't exclusive for 18 to 34 year olds but it might be particularly prescient for them, is that you can sometimes become overwhelmed," says Rounds. "There's so many different priorities out there, so let's take a step back, examine the different resources you have available."

He says those resources include visiting a financial advisor to doing their own online research.

Other findings from the survey include:

88 per cent of 18 to 34 year olds had no withdrawals from their RRSPs in the past year, 48 per cent contribute through a regular contribution plan, 16 per cent plan to make the maximum allowable contribution, 41 per cent contributing the same amount as last year, and 35 per cent contributing more than last year.