Risk-taking on the rise among Canadians

By Staff | January 30, 2013 | Last updated on January 30, 2013
2 min read

As the overall outlook for equities turns cheery, Canadian investors are becoming increasingly open to taking risks this year, finds a research by Franklin Templeton Investments.

The January 2013 survey finds 82% of investors identify themselves as having a specific investment personality, up from 68% in 2009.

The percentage of investors who identify themselves as risk-taking has increased to 14%, up from a relatively steady 8% in the past four years.

Read: Equity returns propel Canadian pensions: RBC

“Canadian investors are becoming more confident and open to taking risks,” says Don Reed, president and CEO of Franklin Templeton Investments Corp.

The survey also shows that 46% of investors are worried about running out of money in retirement, while 11% have no financial concerns about retirement.

“Since 2008, many people have moved their retirement savings into low-yielding bonds and cash, so any investment growth has lost out to inflation,” says Reed. “To help grow their RSP, Canadians need to invest in the equity markets over the long-term.”

One way to get back into the markets, he adds, is to dollar-cost average into an equity mutual fund or balanced fund.

Read: Tiger 21 portfolios increase equity exposure

The survey also found:

  • More men identify themselves as opportunistic, risk-taking or analytical at 47% than women at 35%.
  • On a regional basis, Albertans are the biggest risk-takers at 20%, while Ontarians and Quebeckers are more risk-averse at 13%.
  • Men are significantly more risk-taking (18%) than women (10%).
  • People are less worried about running out of money in retirement once they are aged 55 or over (34%) compared to those aged 35 – 54 (53%) and 18 – 34 (56%).
  • On a regional basis, British Columbians are highly likely to have financial concerns about retirement at 90%, compared with Quebeckers who were the least concerned at 86%. Albertans were most concerned about running out of money in retirement at 51%, while British Columbians were the least concerned at 40%.
  • English-speaking Canadians are more likely to have financial concerns about retirement (90%) than their French-speaking counterparts (83%).
  • When it comes to thinking about their retirement savings and investments, almost three-quarters (73%) have little or no stress.

Read: Low rates stifle government bonds

Advisor.ca staff


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