Canadians Need to Save More Money

The results are in and it’s true. From October 20th to October 21st, 2017 an online survey was conducted among 1,523 randomly selected Canadian adults and according to CIBC’s latest results, 85% of Canadian citizens agree that they should be saving more money than what they currently are. In fact, BNN reported that eighty-five percent said they “need to save more money,” and 79 percent of respondents aged 35 to 54 said they worry about not having enough funds to retire when they want to.

So what does this mean for expenses only continue to grow?

Consumer spending isn’t going to end, especially with low-interest rates here in Canada. And this is one of the main reasons savings are not being made a priority. But as BNN also reported, sixty-five percent of those surveyed said they lack a detailed or regular savings plan; twenty-six per cent of those people “don’t really save” or “never save” at all. And all of this is despite eighty-two percent of respondents’ claimed they could “cut back” each month by an average $360 “before feeling the pinch.”

Everyone also has their own savings strategies that work best for their lifestyle and expenses. And this survey result tells that story as only thirty-eight percent, save varied amounts each month depending on what’s left over after spending and expenses.

Other key poll findings from the CIBC survey were:

  • 85 percent of Canadians agree that they ‘need to save more money’
  • 64 percent say they lack a detailed or regular savings plan, including 26 percent who ‘don’t really save’ or ‘never save’ at all
  • 82 percent admit they could ‘cut back’ each month by on average $360 ‘before feeling the pinch’
  • In addition to their regular income, nearly two-thirds (62 percent) say they receive on average $2,280 in ‘extra money’ each year
  • 79 percent of those aged 35-54 worry about not having enough money to retire when they want to
  • 53 percent of Canadians say they’d use credit or borrow from friends and family if faced with unexpected $1,000expense
  • Top hurdles to saving are: not earning enough income (46 percent), getting derailed by unexpected expenses (29 percent), and struggling to pay everyday expenses (24 percent)

For more details on the full survey results and CIBC news release, click here.

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