But the younger generation is getting it
right - Close to 7 in 10 (68%) Gen Z are investing
consistently on a yearly basis – the highest across any age
demographic
TORONTO, Nov. 14,
2024 /CNW/ - Canada's shifting economic climate
continues to influence Canadians' approach to saving and investing,
as they work towards their financial goals.
A recent survey by TD Bank Group reveals that less than
half (49 per cent) of Canadians believe they are saving
enough to reach their financial goals. Of those surveyed,
respondents cited a lack of financial knowledge as a major barrier,
with 45 per cent of Canadians not feeling confident in their
investment knowledge.
The survey further outlines what's keeping Canadians from
meeting their financial goals:
- High cost of living is impacting 65 per cent of
Canadians' ability to meet their financial goals.
- Nearly a third (30 per cent) of Canadians don't
currently have an investment plan. Among those lacking an
investment plan, 29 per cent feel they don't save enough
money to warrant a personalized plan, while 20 per cent say
they don't know where to begin.
- Only 58 per cent of Canadians are making investments at
least once a year with data showing that a third of Canadians
(34 per cent) have never invested.
- Almost half (48 per cent) of those who feel their
long-term investments aren't set up effectively say they'd be more
confident in reaching their financial goals if helped by a
financial professional.
"It's no secret that Canadians are feeling the impact of the
current economic climate in how they approach their investments,
and that's why it's more important than ever to seek trusted
advice," said Pat Giles, Vice
President, Saving & Investing Journey at TD. "It's encouraging
to see that Canadians would feel more confident reaching their
financial goals if helped by a financial professional. Having the
right financial support can make a significant difference when it
comes to planning for both short and long-term financial
goals."
Today's economic realities have led to an increase in
Canadians keeping their cash in savings accounts instead of
investing.
The survey also found that Canadians are relying more on their
savings accounts to cope with growing financial pressures, opting
for cash liquidity over investment accounts. Over a third (35
per cent) of Canadians are contributing to a savings account
only instead of contributing to a Tax-Free Savings Account (TFSA),
Registered Retirement Savings Plan (RRSP), or First Home Savings
Account (FHSA).
However, more than two in five (44 per cent) Canadians
recognize they could realize their financial goals through improved
financial planning. Younger Canadians (Gen Z – 59 per cent
and Millennials – 55 per cent) feel this more strongly than
Gen X (43 per cent) or Boomers (32 per cent).
Interestingly, close to 7 in 10 (68 per cent) Gen Z
have consistently invested funds at least annually – the highest
across any age demographic.
"Balancing competing saving and spending priorities can be
challenging," said Giles. "It's possible to enjoy the
present while also investing and saving for the future. Setting
financial goals doesn't require a large amount to start; it's about
cultivating a habit of investing and sticking to it. A TD Personal
Banker can help you build a plan based on your unique needs and the
amount you would want to contribute. No amount is too small to
start saving or investing."
Understanding your options
With tax season upon us, less than a third (30 per cent)
of Canadians feel confident in knowing when to contribute to an
RRSP versus a TFSA. A TD Personal Banker can help Canadians
understand the different savings options available to them, help
them develop a plan suited to their financial goals, educate them
on getting started in investing and help to expand their financial
knowledge.
TD also offers customer tools and resources to help them
establish their financial goals, set personalized financial plans,
and track their progress as they work towards achieving them:
- Using TD Goal Builder, a TD Personal Banker can provide
customized investment advice to help customers work toward their
financial goals, whether they're saving for retirement, a child's
education, a home or another major purchase.
- TD Financial Planning Direct offers end-to-end wealth
experience delivered remotely. From opening accounts to developing
a comprehensive financial plan, customers can take charge of their
financial well-being, wherever they are.
- The TD Ready Advice Hub has information and articles
available on a variety of financial topics and investing.
About the survey
This Maru Public Opinion survey conducted on behalf of TD
Bank was undertaken by the sample and data collection experts at
Maru/Blue. 2,695 randomly selected Canadians adults and are
Maru Voice Canada online
panelists were surveyed from October
10th to October
14th 2024. The results of this study have been
weighted by education, age, gender, and region (and in Quebec, language) to match the population,
according to Census data. This is to ensure the sample is
representative of the entire adult population of Canada. For
comparison purposes, a probability sample of this size has an
estimated margin of error (which measures sampling variability) of
+/- 1.9%, 19 times out of 20. Discrepancies in or between totals
when compared to the data tables are due to rounding.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively
known as TD Bank Group ("TD" or the "Bank"). TD is the sixth
largest bank in North America by
assets and serves over 27.5 million customers in four key
businesses operating in a number of locations in financial centres
around the globe: Canadian Personal and Commercial Banking,
including TD Canada Trust and TD Auto Finance Canada; U.S. Retail,
including TD Bank, America's Most Convenient Bank®, TD Auto Finance
U.S., TD Wealth (U.S.), and an investment in The Charles Schwab
Corporation; Wealth Management and Insurance, including TD Wealth
(Canada), TD Direct Investing, and TD Insurance; and Wholesale
Banking, including TD Securities and TD Cowen. TD also ranks among
the world's leading online financial services firms, with more than
17 million active online and mobile customers. TD had $1.97 trillion in assets on July 31, 2024. The Toronto-Dominion Bank trades
under the symbol "TD" on the Toronto and New York Stock Exchanges. TD
Wealth Financial Planning Direct is a service offering from TD
Wealth Financial Planning, a division of TD Waterhouse Canada Inc.,
a subsidiary of The Toronto-Dominion Bank.
SOURCE TD Bank Group