Canada Education Savings Program: 2021 Annual Statistical Review

On this page

• List of acronyms
• List of figures
• List of tables
• About this report
• Introduction
• The Canada Education Savings Program at a glance
• Part Ⅰ: Program background information
• Part ⅠⅠ: Analysis of key results
• Part ⅠⅠⅠ: Government of Canada outreach activities
• The data in this report
• Annex A – Reporting in constant dollars
• Annex B – Canada Education Savings Program results for 2021
• Annex C – Characteristics that increase the chances of not receiving Canada Education Savings Program incentives

Alternate formats

About this report

The 2021 Annual Statistical Review (ASR) of the Canada Education Savings Program (CESP) provides statistics on Registered Education Savings Plans (RESP) for the period between January 1 and December 31, 2021. The ASR also provides statistics on the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB). The CESG and the CLB are 2 education savings incentives paid into RESPs provided by the Government of Canada. The report also provides historical data.

Introduction

The Government of Canada encourages using RESPs to save for a child’s postsecondary education (PSE), including full- or part-time studies at a trade school, college, university, or in an apprenticeship program. Employment and Social Development Canada (ESDC) administers the CESG and the CLB to help Canadians build early savings.

The Canada Education Savings Program at a glance

National summary

Table 1: National summary of statistics^{Footnote 1Footnote 2Footnote 3}

For accessibility reasons, the table has been simplified. Consult the PDF version for the full table.

Part Ⅰ: Program background information

This section describes education savings incentives available as part of the RESPs and the role of financial institutions in promoting them.

Registered Education Savings Plans

To receive education savings incentives, an RESP must be opened with a bank, financial planner, scholarship plan dealer, or an insurance company.

Anyone can open an RESP. Typically, a parent, grandparent, or another family member opens an RESP and names a child as the plan’s beneficiary. The person who opens the RESP is referred to as the subscriber. The subscriber does not need to be related to the beneficiary.

There are 2 types of RESPs:

• individual plans: only 1 beneficiary is named to the RESP
• family plans: multiple beneficiaries may be named to the RESP, but they must all be directly related (including through adoption) to the subscriber

Group plans are available where savings for many (non-family) beneficiaries of the same age group are pooled together and collectively invested by a scholarship plan dealer.

Funds in an RESP can be held in a variety of forms (for example, savings deposits, guaranteed investment certificates, mutual funds, and other types of investments); they grow tax-free until withdrawn by the subscriber. Depending on the promoter and their offerings, numerous avenues are available, including low- or no-fee options^{Footnote 6}.

Canada Education Savings Grant

The CESG consists of a basic grant (Basic CESG) available to families of all income levels and an additional CESG amount (Additional CESG) for beneficiaries from low- and middle-income families.

Basic CESG

The Basic CESG is a 20% payment into an RESP on the first $2,500 of contributions made into the RESP each year, or up to $5,000 in contributions if sufficient carry forward room exists. Beneficiaries are eligible until the end of the calendar year they turn 17.

Grant room and carry forward

Grant room, or unused amounts of the Basic CESG, accumulates for each child until December 31 of the year they turn 17. This fact remains true even if they are not a beneficiary of an RESP. A $500 amount is added annually to the grant room for each eligible child.

Unused Basic CESG amounts for the current year are carried forward for possible use in future years, provided the beneficiary remains eligible.

Additional CESG

Beneficiaries from low- or middle-income families may also qualify for the Additional CESG. This is a payment of 10% or 20% on the first $500 of contributions made in an RESP each year on or after January 1, 2005, up to the end of the calendar year the beneficiary turns 17.

For 2021, the following adjusted family income thresholds determined eligibility for the Additional CESG:

Canada Learning Bond

The CLB is available to individuals born on or after January 1, 2004, from families whose income is below a certain threshold (Table 3) or for whom benefits are payable under the Children’s Special Allowance Act. The bond provides an initial sum of $500 in an RESP and $100 for each subsequent benefit year of eligibility, up to the benefit year in which the beneficiary turns 15, to a maximum of $2,000. Contributions to an RESP are not required to receive the CLB. The CLB can also be claimed for previous years during which the child was eligible, even if they do not have an open RESP^{Footnote 7}.

Eligibility for the CLB is based, in part, on the number of qualifying children and the adjusted income of the primary caregiver, including that of a cohabiting spouse or common-law partner, as outlined in the Canada Education Savings Act. Accordingly, a child receiving the CLB in a given year might not be eligible in subsequent years. For example, a child who received it in 2020 would not qualify in 2021 if their adjusted family income was higher than $49,020 that year.

From July 1, 2021, to June 30, 2022, the CLB eligibility was based, in part, on the following adjusted family income thresholds:

Registered Education Savings Plan promoters

The role of RESP promoters, the organizations offering RESPs and education savings incentives, is essential. They assist with the application process and help the subscriber understand the various investment options. In 2021, there were 85 promoters, which fell into 4 categories:

• banking services: deposit-taking institutions that provide private and commercial services
• insurance and other: institutions that offer insurance (property, casualty, life, and health) and various registered plan promoter types
• investment services: institutions that provide services in investment banking, brokerage services, wealth management, fund operations, and private equity, security and commodity exchanges
• scholarship plan dealers: institutions that offer registered plans by age cohort in addition to family and individual plans

In 2021, investment services held the largest share of RESP assets (47.0%) and received the bulk of CESG payments (41.3%). On the other hand, banks received the highest proportion of CLB payments (48.0%).

Figure 1 - Text Version

Promoter type	RESP assets
Banking services	28.3%
Insurance and other	5.4%
Investment services	47.0%
Scholarship plan dealers	19.4%

Figure 2 - Text Version

Promoter type	CESG payments
Banking services	33.8%
Insurance and other	7.3%
Investment services	41.3%
Scholarship plan dealers	17.6%

Figure 3 - Text Version

Promoter type	CLB payments
Banking services	48.0%
Insurance and other	11.7%
Investment services	20.6%
Scholarship plan dealers	19.7%

Key government initiatives

The Government of Canada encourages Canadians to plan and save early for the PSE of a child using RESPs. In 2021, 56.7% of eligible children (0 to 17 years old) in Canada received federal education savings incentives in an RESP. Research shows that children are more likely to access higher learning opportunities when money is set aside for PSE^{Footnote 9}. Helping more low- and middle-income families save for their children’s PSE reduces barriers to higher education.

To this end, the Government of Canada has advanced several initiatives to promote the benefits of early planning and savings for PSE and raise awareness of and enable access to the education savings incentives that help build savings in an RESP.

Investments in community-based organizations

As part of the second funding phase announced in Budget 2017, the Government of Canada invested approximately $6.9 million in 2021 to finance several projects from community-based organizations.

These 2-year projects ((2022 to 2023) to (2023 to 2024)) will support families throughout the process of opening an RESP and accessing the CLB via:

• one-on-one assistance for individuals and families
• virtual support
• the integration of information into existing programs and service offerings

Applications for unclaimed CLB, for eligible youth transitioning to PSE

Typically, a parent, grandparent, or another family member opens an RESP and names a child as the plan’s beneficiary. Nevertheless, under current legislation, individuals eligible for the CLB but who have not yet received it can apply for the incentive for themselves as soon as they turn 18. They will have up until the day before their 21st birthday to do so. They will still be eligible for the entire amount they would have received had it been requested from birth, up to a maximum of $2,000.

In 2022, ESDC anticipates that around 147,000 18-year-old eligible individuals who have not yet received the CLB could apply for the bond. This represents about $192 million in CLB payments.

The Government of Canada sends individualized letters of eligibility to families of children who are eligible for, but have not yet received the bond. Recently, these letters started informing families that once the child turns 18, they can open an RESP for themselves and apply for the CLB. This information will enable eligible youth transitioning to PSE to request unclaimed amounts of the CLB.

Engagement with external stakeholders

The Government of Canada continues to engage with various partners and stakeholders, encompassing provinces, territories, and Indigenous organizations, to explore novel ways of promoting and accessing education savings among underserved and harder-to-reach demographics. Most notably, ESDC works with its network of CLB Champions to assist low-income families, Indigenous People, and newcomers to Canada. This network includes the following groups:

• non-governmental, community-based organizations
• front-line service providers
• postsecondary institutions
• RESP promoters
• national philanthropic and charitable organizations
• federal, provincial and municipal governments

The government also engages with provincial and territorial child welfare organizations. This year’s collaboration featured the dissemination of a toolkit for public primary caregivers in 2021 to help support access to education savings incentives for children in care. Most of these organizations, such as public primary caregivers receiving children’s special allowances payments, can open an RESP and request the CLB for children in their care.

Education Savings Week

Supported by ESDC, Education Savings Week (ESW) is a community-led communication and outreach initiative celebrated in November of every year. It brings together partners and stakeholders to increase awareness of the benefits and availability of the Government of Canada’s education savings incentives.

ESW coincides with the Financial Literacy Month (November), National Child Day (November 20), and Financial Planning Week. In 2021, ESDC hosted a series of virtual sessions on:

• the Government of Canada supports for Canadians transitioning to PSE, including information on the Canada Student Financial Assistance Program
• Indigenous learners
• lessons learned over 10 years of enabling access to the CLB in Calgary, Alberta

Investing in tomorrow

For youth to make the most of future opportunities, they need to be equipped with the knowledge, skills and experience that come from PSE. By offering education savings incentives to Canadians, the Government of Canada is investing in a skilled and innovative workforce for tomorrow.

According to Statistics Canada’s Labour Force Survey, employment rates were consistently higher among individuals with some PSE. In addition, according to 2019 ESDC projections, two thirds of new Canadian job openings between 2019 and 2028 will require some PSE^{Footnote 10}.

Part ⅠⅠ: Analysis of key results

Contributions to Registered Education Savings Plans

Average annual contributions to CESG beneficiaries’ RESPs decreased by 3.0% between 2012 and 2019 (Figure 4). Conversely, they grew 5.4% between 2019 and 2021, reversing the 8-year trend. This is likely due to the COVID-19 pandemic, which resulted in reduced household spending and heightened savings. These extra savings may have made it possible for some families to invest more in RESPs. In addition, robust financial markets encouraged some families to invest additional amounts in RESPs.

Between 2012 and 2016, average annual contributions to the RESPs of CLB beneficiaries remained stable (Figure 5). However, in 2017, they increased by 2.7%.

The period from 2019 to 2021 also saw a 6.9% rise in average annual contributions to the RESPs of CLB beneficiaries. The pandemic is likely the cause of this. Many CLB beneficiaries who received relatively lower contributions in 2019 no longer received any in 2021. As a result, average annual contributions to the RESPs of CLB beneficiaries receiving contributions grew^{Footnote 11}.

Figure 4 - Text Version

Years	Average annual contributions (in 2021 constant dollars)
2012	$1,725
2013	$1,726
2014	$1,711
2015	$1,707
2016	$1,695
2017	$1,707
2018	$1,686
2019	$1,673
2020	$1,717
2021	$1,764

Figure 5 - Text Version

Years	Average annual contributions (in 2021 constant dollars)
2012	$1,175
2013	$1,187
2014	$1,188
2015	$1,191
2016	$1,186
2017	$1,219
2018	$1,221
2019	$1,235
2020	$1,277
2021	$1,320

Canada Education Savings Grant take-up rate

Between 2020 and 2021, the CESG take-up rate increased in all provinces and territories (Table 4)^{Footnote 12}. Quebec experienced the most significant jump at 2.1 percentage points (pp).

By 2021, the take-up rate was highest in British Columbia at 59.3%, followed closely by Quebec at 59.0%. These 2 provinces are likely at the top because they offer education savings incentives beyond the CESP, making RESPs more attractive for parents. Nunavut had the lowest take-up rate of only 5.6%.

Overall, between 2012 and 2021, CESG take-up increased in all provinces and territories. It rose by 9.5 pp at the national level, from 45.6% to 55.1% (Table 4). Growth was most significant in Quebec (at 18.2 pp).

Canada Learning Bond take-up rate

Between 2020 and 2021, CLB take-up rates increased in all provinces and territories (Table 5). Again, Quebec experienced the greatest rise (1.3 pp). In 2021, the take-up was highest in British Columbia at 50.9%, followed closely by Quebec at 49.6%. Nunavut’s was the lowest at 2.7%.

Over the past 10 years, rates grew by 14.8 pp at the national level, going from 27.8% in 2012 to 42.6% in 2021 (Table 5). All provinces and territories saw an increase, with the steepest being in British Columbia (19.2 pp), closely followed by Quebec (18.8 pp).

Number of new Canada Learning Bond beneficiaries

The COVID-19 pandemic significantly impacted the number of new CLB beneficiaries. In 2020, it decreased by 29.2% compared with 2019 (Table 6). In 2021, this trend continued, with the number of new CLB beneficiaries dropping by another 11.3% relative to 2020.

Registered Education Savings Program withdrawals for postsecondary education

The amount of funds withdrawn from RESPs includes Educational Assistance Payments (EAPs) and PSE withdrawals.

Once enrolled in a qualifying PSE program, a beneficiary can request EAPs^{Footnote 13}. An EAP consists of CESG and CLB amounts, as well as amounts paid under a provincial education savings program and income earned through assets in the RESP. EAPs are taxable income for the beneficiary, who often has a modest income while studying, so the income tax paid on EAPs is generally low. The beneficiary can use these funds to cover their tuition and other PSE costs, such as textbooks and rent.

At the same time, the subscriber can make a PSE withdrawal. This is a withdrawal of contributions the subscriber makes without penalty when the beneficiary enrolls in PSE. Although it is not required, this money can further assist with PSE-related expenses.

Between 2012 and 2021, RESP withdrawals rose by 19.8% (in constant dollars, Figure 6). Two main factors can explain this. First, the average age of new beneficiaries has been declining as parents are saving sooner for their child’s PSE. The earlier that Canadians start to save in RESPs, the more money accumulates in it. As a result, more funds are available for students to use. Second, the costs of education and living generally increased over time. Despite the availability of significant student financial assistance, students may need more money every year to make ends meet.

Figure 6 - Text version

Years	Average RESP withdrawals (in 2021 constant dollars)
2012	$8,442
2013	$8,845
2014	$9,099
2015	9,280
2016	$9,387
2017	$9,590
2018	$9,733
2019	$9,843
2020	$9,718
2021	$10,115

Part ⅠⅠⅠ: Government of Canada outreach activities

ESDC undertakes outreach and engagement initiatives with the CLB Champions Network. This work aims to:

• promote the benefits of early planning and savings for the PSE of a child, and raise awareness of education savings incentives that help build savings in an RESP
• enable access to RESPs and the education savings incentives; most notably, among the primary caregivers of the eligible children and soon-to-be eligible adult beneficiaries
• contribute to a greater understanding of Government of Canada supports and resources available to Canadians transitioning to PSE to make education more affordable

Key challenges

There are several obstacles faced by those that are eligible for but do not receive education savings incentives, including:

• a lack of awareness of:
  • the benefits of saving early for the postsecondary education of a child
  • the availability of the education savings incentives from the Government of Canada
  • the process of opening an RESP
• an absence of foundational documents required to open an RESP and request the CLB for their child, including Social Insurance Numbers and birth certificates
• limited access to financial institutions and services, particularly among those living in rural, remote or isolated communities
• logistical challenges associated with attending appointments at financial institutions, either in-person or online, such as transportation, childcare, time off work and language barriers
• choice overload when making investment decisions, such as those associated with the various financial products (for example, guaranteed investment certificates or mutual funds)

Annex C contains more information on the characteristics that heighten the chances of not receiving the CESG, CLB, 10% Additional CESG or 20% Additional CESG (for eligible children).

The COVID-19 pandemic has likely amplified the impact of key challenges listed above, as many in-person services and supports have not been available.

In addition, several emerging challenges are informing ESDC’s outreach activities, notably:

• increased use of online tools and resources in daily life
• limited ability to hold in-person events for disseminating information and for learning about, and initiating, the process of opening RESPs as a means of accessing the CLB
• messaging overload may limit the effectiveness of calls to action around education savings. Those with lower levels of financial literacy, as well as individuals living with low-income and other harder-to-reach groups, increasingly sometimes receive competing or conflicting messaging
• stakeholder organizations across the country have noted that “readiness” to take action for education savings varies from community to community, region to region and sector to sector. Faced with increasing demands and financial pressures, community partners are establishing varying priority areas of action

Key areas of activity moving forward

To better help its partners and stakeholders, ESDC will continue to support community-based organizations with mailings to primary caregivers of CLB-eligible children within their communities, including youth transitioning to PSE. Mailings provide information about:

• the child’s eligibility for the CLB
• the process of opening an RESP and requesting the CLB, both online and in the community

Community outreach and engagement activities moving forward for the year will focus on:

• youth (18 to 20 years of age) transitioning to PSE
• primary caregivers of low-income households, and public primary caregivers of children for whom the child special allowance is paid
• hard-to-reach demographics, such as Indigenous peoples and those living in rural, remote and isolated communities

The data in this report

Data sources: The data in this report come from the CESP reporting database, which compiles information from 85 RESP promoters.

Rounding: The numbers presented in this report may not add up exactly due to rounding decimals.

Aggregation and non-Canadian residents: National totals include data on beneficiaries whose regional identity is either unknown or outside Canada. Because of this, provincial and territorial statistics may not add up precisely to the stated national total.

Historical data: Except for contributions and withdrawals, all figures reported here are nominal and do not account for inflation. The 2021 report supersedes previous editions. Due to the nature of financial transactions, earlier years’ data are updated annually to reflect corrections or additional reporting by financial institutions that may have been delayed.

Readers who require older data or wish to refer to available data, please refer to the corresponding data sets on the Open Government Portal, or contact the CESP by email at cesp-pcee@hrsdc-rhdcc.gc.ca.

Annex A – Reporting in constant dollars

This year, the Department reports contributions and withdrawals in constant, or “real,” dollars^{Footnote 14}.

Current dollars refer to dollars in the current year, unadjusted for inflation. Constant dollars have been adjusted to reflect their real “purchasing power^{Footnote 15}”. For instance, a dollar in 1998 could buy a hotdog and a drink. In 2021, a dollar could only get a hotdog. As a result, the 1998 dollar had more purchasing power than the 2021 dollar; in other words, it could buy more.

Constant dollars show how the “purchasing power” of contributions and withdrawals changed over time, which current dollars cannot do. Using constant dollars also aligns with analyses done by the Office of the Chief Actuary (responsible for the valuation of the Canada Pension Plan, Old Age Security Program, Canada Student Financial Assistance Program and Employment Insurance Program), Finance Canada, the Bank of Canada, and other organizations.

Figure 7 shows the average annual contributions for beneficiaries receiving the CESG between 2010 and 2021. Average annual contributions are shown in both current and 2021 constant dollars.

• Average annual contributions generally declined in constant dollars, going from $1,796 in 2010 to $1,673 in 2019, a 7% drop^{Footnote 16}. This drop means that, increasingly, Canadian families are saving less, and Canadian children will have to find other sources of funds to pay for their postsecondary education. For instance, they might have to take on more loans or work more hours to cover education-related costs
• Using current dollars would have led to the opposite or inaccurate conclusion that average annual contributions constantly increased over time^{Footnote 17}

Figure 7 - Text version

Years	Average annual contributions (in 2021 constant dollars)	Average annual contributions (in current dollars)
2010	$1,796	$1,478
2011	$1,741	$1,474
2012	$1,725	$1,482
2013	$1,726	$1,497
2014	$1,711	$1,513
2015	$1,707	$1,526
2016	$1,695	$1,537
2017	$1,707	$1,572
2018	$1,686	$1,588
2019	$1,673	$1,607
2020	$1,717	$1,661
2021	$1,764	$1,764

Annex B – Canada Education Savings Program results for 2021

All dollar values are in current dollars unless specified otherwise.

Registered Education Savings Plan assets and contributions

Canada Education Savings Grant

Canada Learning Bond

Registered Education Savings Plan withdrawals for postsecondary education

Annex C – Characteristics that increase the chances of not receiving Canada Education Savings Program incentives

In 2021, CESP data were made available to researchers on Statistics Canada’s Education and Labour Market Longitudinal Platform (ELMLP). This platform allows the linkage of program and survey data to better understand student and apprentices’ outcomes over time.

To document the profiles of CESP beneficiaries, CESP data were linked to 2016 Census data, the most recent Census data available on the ELMLP. Regressions^{Footnote 63} were conducted to identify the characteristics that increase the risk of not receiving the Basic CESG, 10% Additional CESG, 20% Additional CESG or CLB. The following results highlight the factors found to have the most significant impact.

Overall, the chances of not receiving an education savings incentive are higher if:

• the child lives in the Northwest Territories or Nunavut
• the primary caregiver (PCG) self-identifies as Indigenous
• the PCG lives in band housing
• the PCG did not receive government transfers

The chances of not receiving the CLB for eligible children are higher if:

• the PCG lives in the Northwest Territories or Nunavut
• the child is less than 1 year old
• the PCG was born in Canada
• the PCG is Indigenous
• the PCG lives in band housing
• the PCG did not receive government transfers

The chances of not receiving the Basic CESG for children that are eligible for the Basic CESG but not the additional CESG are higher if:

• the PCG lives in Quebec or in 1 of the 3 territories
• the PCG is Indigenous
• the PCG has less than a bachelor’s degree
• the PCG works full-time
• the PCG lives in band housing
• the PCG has 3 or more children
• the PCG did not receive government transfers

The chances of not receiving the 10% Additional amount of CESG for eligible children are higher if:

• the child resides in Nunavut
• the child is between 15 and 17 years of age
• the PCG is Indigenous
• the child belongs to a lone-parent family
• the PCG has a low level of education (high school or less)
• the PCG works full-time
• the PCG rents its accommodation or lives in band housing
• the PCG did not receive government transfers

The chances of not receiving the 20% Additional amount of CESG for eligible children are higher if:

• the PCG resides in a province other than Quebec or 1 of the 3 territories
• the child is less than 1 year old or is 15 to 17 years old
• the PCG was born in Canada
• the PCG is Indigenous
• the PCG rents their accommodation or lives in band housing
• the child belongs to a lone-parent family
• the PCG did not receive government transfers