With record household debt levels and not enough disposable income to go around, Canadians under 65 won’t be maxing out their Registered Retirement Savings Plan (RRSP) this year.

While three quarters of employed Canadians plan to contribute to the RRSPs before the March 2nd deadline, half admit they’ll only put in what they can afford to, according to a survey by H&R Block tax services.

“Quite often (when) people are in a younger stage of life, they might have more family to look after or they’re trying to pay off their home,” Caroline Battista, a senior tax analyst with H&R Block Canada, told Yahoo Canada Finance. “They’ve got other financial issues that they’re thinking about.”

Baby Boomers are a different story, with Canadians 65 years or older nearly four times more likely to max out their contribution than Canadians under 65.

“Seniors typically have more disposable income,” says the analyst. But Battista says she’s not surprised with most the results, the fact that most Canadians are contributing something is encouraging.

“62 per cent said they were doing it to save for retirement not just to get a bit of money off their taxes,” she adds. “It’s good news people are realizing they need to save.”

While those making less than $40,000 a year – slightly less than the $48,250 the average Canadian makes according to Statscan – are most likely to just put money in when they can, those in the $40,000 to $80,000 range are apt to make monthly contributions.

“You just think of it as one of your bills every month,” says Battista.

When it comes to those making over $80,000, the name of the game is dumping a lump sum just before deadline.

As for the 26 per cent of employed Canadians that don’t make contributions to RRSPs, Battista has a hunch.

“There is a segment of people where putting money into an RRSP doesn’t really give them a great tax advantage,” she says pointing to those who are earning in a lower tax bracket now but expect to be earning in a higher one later in life when they plan to retire. “The point is, if you’re making a good income you put it away now and you take it out later when you would be in a lower tax bracket.”

There’s also been an influx of people using Tax Free Savings Accounts (TFSA) – a safe haven for after-tax income. It just means you won’t have to pay later in life when you take it out of the account, says Battista.

First launched in 2009, Canadians can contribute up to $5,500 to their TFSA in a year. The contribution limit for an RRSP is tied to your income.

“One thing that’s important to know is if you’re a monthly contributor to your RRSP, the contributions from January and February must be registered on the prior years return,” says Battista. It’s a change made recently by the CRA in light of the eclipsing amount of Canadians who file online. “If you don’t wait until you have the receipts for those months, you’ll have to submit an adjustment later on.”