Canadians say affordability biggest hurdle to saving

The majority of Canadians find lack of affordability a real barrier to their saving efforts, says a recent Scotiabank poll.

“We know that every customer’s finances are unique and require a saving or investing plan tailored to work for each specific situation,” said Mike Henry, senior vice-president of retail payments, deposits and lending at Scotiabank. “It’s important to grab every savings opportunity and remember that even small contributions can help move you toward your goals.”

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On a more positive note, the study shows more Canadians are moving in the right direction with 53% taking such remedial steps as automatically putting money toward savings or investments.

And while 28% of those polled admit to getting a late start on their investing, over half (55%) report they regularly add to their investments.

Additional findings of the survey include:

• 59% agree they have a very good understanding of how much to save to fund their desired retirement lifestyle.
• 54% are contributing at least monthly to their savings and investments.
• 38% cite lack of funds as their top reason for not having money automatically transferred.
• Men (65%) are more likely than women (54%) to feel they know what they need to fund their desired retirement lifestyle.
• Residents of Manitoba/Saskatchewan residents and Alberta (34%) are more likely than Ontarians (26%) to admit to a later start to investing.
• Men (31%) are more likely than women (22%) to say they began saving at an early age.
• Women (67%) are more likely than men (60%) to cite lack of affordability as the main barrier to increasing their savings.
• Atlantic Canadians (69%) are more likely than Albertans (57%) to indicate lack of affordability while older Canadians (age 55+) are most likely to say they are saving enough already (32%).
• Quebec residents (57%) are more likely than Ontarians (51%) and British Columbians (47%) to say they pay themselves first by automatically putting money into their savings or investments.
• Men are significantly more likely than women to be paying themselves first (56% versus 49%).

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.