RDSP (Registered Disability Savings Plans) finished 2011 on a high note, with $559 million in assets, up 66% on a year-over-year basis and up 23% in the second half of the year. As of December 31 there were 59,025 RDSP accounts, for a net increase of just over 5,000 accounts in 2011. With the introduction of the Specified Disability Savings Plan (SDSP) – a more flexible withdrawal option for those with a shortened life expectancy – participation rates are expected to rise, likely setting off an influx of new accounts in the short-term.
Mutual funds continue to occupy a strong foothold in the still relatively unchartered waters of RDSPs. Mutual fund assets held in these plans rose sharply throughout 2011 and the product category now accounts for 57% of the total RDSP assetbase, up 7% from 2010. Despite a 35% increase in balances, the share held by savings accounts declined from 36% in 2010 to 29% at the end of 2011. BMO remained the biggest sponsor of RDSPs, followed by RBC and TD. For more on our outlook for RDSPs, please see the 2011 Household Balance Sheet Report http://investoreconomics.com/issue/household-balance-sheet-report-3. Posted by Anthony Yeung Anthony@iei.ca.