Amid Low Interest Rates and Volatile Markets,
Saving for Retirement Remains #1 Financial Priority for Canadians
A majority (54%) of Canadians list retirement savings among their top-three goals, followed closely by general savings for a rainy day (46%) and regular payments to reduce or eliminate debt (42%), rounding out the top-three financial priorities for Canadians. Well behind are other priorities including just trying to keep their head above water (32%), home ownership (29%), savings for a large self-rewarding purchase like a vacation (27%), building an investment portfolio (23%), home renovation (18%), saving for children or grandchildren's education (18%), and supporting aging parents (7%).
With savings and debt firmly established as the top priorities for Canadians, it's not surprising then that three quarters (75%) of Canadians worry (28% a lot/47% a little) about balancing saving for their immediate priorities versus putting money away for the longer term or for their retirement. Those under the age of 30 are most likely (86%) to worry about finding the right balance, followed close by those aged 30 to 39 (82%) and 40 to 49 (79%). Interestingly, those aged 18-29 (61%), 30-39 (57%) and 40-49 (59%) are also least likely to have a financial plan, which could contribute to the worry.
Savings versus debt repayment isn't the only balancing act that Canadians are performing right now, but also trying to find the right mix between RRSPs and TFSAs. If Canadians could only contribute to one option, nearly half (46%) would choose TFSAs (up 3 points), while 28% would only contribute to RRSPS (down 4 points), underscoring the increasing popularity of the TFSA program. One quarter (26%) are unsure of which option they'd choose.
Still, RRSPs remain popular as a majority (55%) of Canadians own an RRSP, which is unchanged from previous years. Further, 38% of RRSP owners have contributed or plan to contribute this tax year, up 1 point from last year. However, one in three (31%) Canadians admit that they have not yet starting saving for retirement, up 1 point from last year.
Of those who are saving for retirement, automatic savings plans are becoming more popular. Fully one half (50%) use automatic savings plans, up 6 points since last year, compared to 39% (unchanged) who use a "whenever I can" approach to saving for retirement.
These are some of the findings of an Ipsos poll conducted between November 11 and 19, 2015, on behalf of RBC. For this survey, a sample of 2,217 Canadians aged 18+ was interviewed online via the Ipsos I-Say panel. Weighting was then employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within +/ - 2.4 percentage points, 19 times out of 20, had all Canadians been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.
For more information on this news release, please contact:
Sean Simpson
Vice President
Ipsos Public Affairs
416.572.4474
[email protected]
About Ipsos in Canada
Ipsos is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos' marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos is an Ipsos company, a leading global survey-based market research group.
To learn more, please visit ipsos.ca.
About Ipsos
Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.
With offices in 86 countries, Ipsos delivers insightful expertise across six research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.
Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.
Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of e1,669.5 ($2,218.4 million) in 2014.
Visit ipsos.com to learn more about Ipsos' offerings and capabilities.
