-
64 per cent of Canadians cite affordability as a barrier to investing
more, up from prior years
-
Four-in-ten Canadians plan to contribute to an RRSP this tax year
-
One-in-two Canadians started to invest before turning 30
-
RRSPs and TFSAs remain popular investment vehicles
TORONTO, Jan. 15, 2013 /CNW/ - Scotiabank's annual Investment Poll shows
affordability continues to be a barrier for Canadians hoping to
increase their nest eggs before the March 1st RRSP contribution deadline (64 per cent, compared to 59 per cent in
2011 and 53 per cent in 2010). Like last year, 39 per cent of Canadians
say they plan to contribute to an RRSP for the 2012 tax year (unchanged
from 2011).
The poll also found that fewer and fewer people feel they have already
invested enough (19 per cent in 2012 versus 24 per cent in 2011 and 29
per cent in 2010). Of those investors who cite lack of affordability to
investing more, most said they do not have a written financial plan (70
per cent), are not saving for retirement (77 per cent) and feel they
are not on track to achieving their retirement goals (80 per cent).
"An investment may be more affordable than you think - the key is to get
a solid financial plan in place to help overcome affordability issues,"
said Mike Henry, Scotiabank Senior Vice President and Head of Retail
Payments, Deposits and Lending. "We urge the sixty-four percent who are
concerned that they can't afford to invest this year to talk to us. We
have experts in every one of our 1100 branches across the country who
will work with them to put a plan in place that will help realize
individual financial goals."
Encouragingly, the poll found that the number of Canadians who have not
started investing has significantly declined since 2011 (17 per cent
versus 21 per cent). Consistent with last year, half of Canadians
started to invest before the age of 30 years (51 per cent in 2012
versus 48 per cent in 2011). One-quarter of younger investors, those
aged 18 to 34 years, have a financial plan (23 per cent).
When asked what major change they would make if they could do it all
over again, four-in-10 Canadians (39 per cent) say they would begin
investing at a much earlier age. As well, significantly more people say
they would spend less and put more of their money into their
investments (23 per cent versus 19 per cent in 2011).
"While Canadians rarely get an opportunity for a financial do-over, it
is important they take advantage of the investment opportunities they
currently have and find a strategy that will work," added Mr. Henry.
"Within the framework of a good financial plan, even small
contributions can have a big impact over time and get people to the
place they want to be financially."
In line with last year's findings, the poll shows most Canadians have an
RRSP (56 per cent versus 60 per cent last year) and/or a TFSA (44 per
cent versus 48 per cent last year). When it comes to other investment
products, most people continue to have savings in a regular savings
account (64 per cent), with half having mutual funds (48 per cent)
and/or putting their savings in a high interest savings account (48 per
cent).
"A good financial plan and investing regularly throughout life is a
cornerstone recommendation of Scotiabank's Financial Literacy Strategy
introduced last November," said Kaz Flinn, Vice President of Corporate
Social Responsibility at Scotiabank. "The strategy encourages people to
become lifelong financial learners in order to effectively manage the
financial needs that come with different stages of life. Developing a
financial plan with an advisor ensures a roadmap is in place to ensure
financial readiness for life's ever-changing needs and challenges."
About the polling data
The 2012 Scotiabank Investment Poll was conducted online using
Harris/Decima's proprietary panel. A total of 1,003 surveys were
conducted from a random sample of panel members aged 18 years and over
across Canada. The study was conducted from November 28th to December
13th, 2012.
About Scotiabank
Scotiabank is one of North America's premier financial institutions and
Canada's most international bank. With more than 81,000 employees,
Scotiabank and its affiliates serve some 19 million customers in more
than 55 countries around the world. Scotiabank offers a broad range of
products and services including personal, commercial, corporate and
investment banking. In December 2012, Scotiabank became the first
Canadian bank to be named Global Bank of the Year and Bank of the Year
in the Americas by The Banker magazine, a Financial Times publication. With assets of $668 billion (as at October 31, 2012),
Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS).
For more information please visit www.scotiabank.com.
Background:
Regional Breakdown
Top Barriers to Investing
Reasons for not investing more
|
Total
|
|
Atlantic
|
Quebec
|
Ontario
|
Man/Sask
|
Alberta
|
BC
|
Can't afford it
|
64%
|
64%
|
63%
|
63%
|
61%
|
60%
|
69%
|
Already invest enough
|
19%
|
21%
|
23%
|
20%
|
18%
|
15%
|
15%
|
Don't have an investment strategy
|
8%
|
7%
|
5%
|
8%
|
12%
|
11%
|
10%
|
Need help or advice
|
7%
|
5%
|
5%
|
9%
|
10%
|
7%
|
5%
|
Lack discipline
|
6%
|
7%
|
4%
|
8%
|
7%
|
13%
|
1%
|
I'm not worried about investing money
|
6%
|
8%
|
4%
|
6%
|
4%
|
9%
|
7%
|
I'm retired/living off my pension
|
3%
|
5%
|
2%
|
3%
|
3%
|
4%
|
4%
|
Major Change in Investment Planning Behaviour
Major change would make to investment plan
|
Total
|
Region
|
Atlantic
|
Quebec
|
Ontario
|
Man/Sask
|
Alberta
|
BC
|
I would begin investing at a much earlier age
|
39%
|
34%
|
34%
|
38%
|
45%
|
44%
|
43%
|
I would spend less and place more into my investments
|
23%
|
24%
|
20%
|
26%
|
24%
|
21%
|
18%
|
I don't know what I'd change
|
15%
|
19%
|
18%
|
15%
|
16%
|
9%
|
13%
|
Nothing, I would not do anything differently
|
14%
|
10%
|
17%
|
14%
|
9%
|
18%
|
15%
|
I haven't done any investment planning yet
|
9%
|
13%
|
10%
|
7%
|
6%
|
8%
|
11%
|
Age Began Investing
Age Began Investing
|
Total
|
Region
|
Atlantic
|
Quebec
|
Ontario
|
Man/Sask
|
Alberta
|
BC
|
Under 20
|
11%
|
12%
|
12%
|
12%
|
11%
|
9%
|
10%
|
20-24
|
20%
|
18%
|
20%
|
26%
|
12%
|
19%
|
8%
|
25-29
|
20%
|
19%
|
20%
|
20%
|
18%
|
25%
|
17%
|
30-39
|
19%
|
17%
|
18%
|
18%
|
26%
|
14%
|
26%
|
40 and older
|
14%
|
18%
|
14%
|
12%
|
17%
|
13%
|
14%
|
Haven't started investing yet
|
17%
|
16%
|
17%
|
14%
|
15%
|
18%
|
26%
|
SOURCE: Scotiabank