Yellowknife (Feb 02/04) - Nunavut has the highest level of RRSP savings in the country, states a new report recently issued by CIBC.

The average annual RRSP contribution per person in Nunavut for 2002 was $6,133, said Benjamin Tal, senior economist with CIBC World Markets.

Tal said he was surprised by the fact that Nunavut has the highest level of contributions in the country

"But if you think of it, it makes sense. The income is relatively high, higher than the national average. They have a high level of public sector employment, which are relatively high quality jobs," said Tal.

Other factors, said Tal, include a number of people on contract.

"They get a premium to work in Nunavut," he said.

The Northwest Territories came in second place in the country for 2002 with a level of RRSP savings set at $5,800.

The RRSP savings rate for Canada as a whole in 2002 was $4,557.

The economist also added the inclination within Nunavut is to save where the "savings rate in Ontario is much lower," he said.

Steve Cook, general manager of Nunastar Properties Inc. and past president of the Iqaluit Chamber of Commerce, said he understands why Nunavut would top the list.

"I would say probably there's a fairly knowledgeable segment of the working population here with regard to investment," said Cook.

"There's a large empty-nester population here," added Cook, explaining empty-nesters maximize their savings through dual incomes, while their adult children live elsewhere.

Cook also said the high RRSP contributions in Nunavut were a credit to the investment counsellors throughout the territory.

"The other thing you have to think about is that there's a large segment of the population not investing in homes here. If they don't have a piece of real estate as a hedge against inflation, then RRSPs are the only option," said Cook.