Advertisement
TORONTO, ONTARIO -- (Marketwire) -- 02/04/13 -- According to the new BMO Household Savings Report released today, Canadians planning to save in 2013 are aiming to put away an average of $9,859 in order to meet their goals - an increase of nearly $600 over last year, or approximately 7 per cent.
While debt levels continue to receive much attention, the report, conducted by Pollara, shows a brighter side of the personal finance ledger.
The report reveals the various different investment vehicles that Canadian savers plan to use to reach their savings goals:
-- The majority of Canadians are using a Registered Retirement Savings Plan (RRSP) or a chequing account (63 per cent and 57 per cent respectively)-- Half (49 per cent) use a Tax Free Savings Account (TFSA)-- One-third (29 per cent) are using a high-interest savings account-- Another quarter (25 per cent) are stashing their savings in Guaranteed Investment Certificates (GICs)
"It's encouraging to see Canadians are planning to maintain or increase their personal savings this year, particularly as we look to balance increasing debt loads and turn around decreasing rates of savings," said Ernie Johannson, Senior Vice President, Personal Banking, BMO Bank of Montreal. "While it's important to pay down debt - particularly high-interest debt - it's essential that households build themselves a financial cushion as well, whether it be for retirement or other goals."
Ms. Johannson noted that balancing the need to pay down debt while still saving can be a challenge, and it's important for Canadians to seek the advice of a professional and create a financial plan that can address both priorities. BMO offers the BMO Smart Saver Account: a high interest savings account that allows for unlimited deposits and transfers into and out of the account and free access to BMO MoneyLogic™ - an online personal financial management tool to help track everyday expenses. Currently the BMO Smart Saver account offers a 1.2 per cent interest rate - the highest rate offered among Canada's major financial institutions for a full-service savings account without minimum balance requirements.
Personal Savings By Region and Gender
----------------------------------------------------------------------------Planned Savings for 2013 Region Gender ------------------------------------------------------------ Canada ATL QC ON MB/SK AB BC Men Women---------------------------------------------------------------------------- $9,859 $6,698 $5,477 $10,465 $9,702 $18,035 $11,109 $11,631 $8,091----------------------------------------------------------------------------
"Cautious Optimism"
However, the poll shows the optimism is tempered by the fact that only half (48 per cent) say they are saving enough to meet their goals, with high expenses (71 per cent), low income (65 per cent), and debt repayment (52 per cent) cited as the top barriers to increased savings.
