According to BMO Economics, the personal savings rate in Canada, calculated by Statistics Canada, currently lies near historic lows at 3.9 per cent. By comparison, the rate climbed above 6 per cent during the height of the latest recession, and reached almost 20 per cent in the early 1980s.
The report also identified the most common savings goals in 2013 among Canadians:
-- Retirement savings and emergency savings tied for second (42 per cent respectively) on the priority list in 2013-- Nearly one-third of Canadians (29 per cent) are putting aside money for home renovations in 2013, while one-in-five will be saving towards the purchase of a new vehicle (20 per cent)-- Education savings are on the priority list for 19 per cent of Canadians, followed by the purchase of a new home (15 per cent)-- However, vacations and the purchase of luxury items, entertainment and hobbies topped the list, with 66 per cent of Canadians putting cash away for these types of purchases
"It is sometimes difficult to balance financial priorities and responsibilities with spending on items and experiences we enjoy," noted Ms. Johannson. "However, given the economic realities, it is key that we don't let the nice-to-dos overshadow our must-dos. Having a balanced savings approach allows us to live for today while saving for our future goals."
To help Canadians continue to build their savings, BMO is offering a 2.25 per cent interest rate on net new deposits to a BMO TFSA Savings Account - the highest rate currently offered by a major financial institution in Canada - until April 30th, 2013.
For more information about how BMO can help make saving more affordable, stop by a BMO branch today or click here.
As part of its ongoing commitment to 'Making Money Make Sense', since 2009, BMO has introduced various tools to help Canadians effectively manage of their personal finances, including BMO MoneyLogic, BMO by Appointment, BMO SmartSteps, BMO SmartSteps for Parents, BMO SmartSteps for Business and BMO SmartSteps for Homeowners.
The BMO Household Savings Report was conducted via Pollara online survey between January 10th and 15th, 2013, with a sample of 1000 Canadians. A probability sample of this size would yield results accurate to +/- 3.1 per cent, 19 times out of 20. Data has been weighted by region, gender, and age, based on the most recent Census figures, so that it is representative of all adult Canadians.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $525 billion as at October 31, 2012, and more than 46,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.
Matt Duffin, Toronto
Ronald Monet, Montreal
Laurie Grant, Vancouver