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One in four canadians has spared nothing at all in 2018

by

Aurelia Morvan

February 14, 2019 09:30

Photo : Freepik

In 2018, 15% of Canadians have managed to save more than $ 10,000, while 25 % have not put one penny aside. This is what emerges from a report published on 12 February by BMO.

The people in debt and spenders do not get to save

The Bank of Montreal questioned as to the reasons which have led, for a quarter, a total absence of savings in the past year. After study of the responses made by the non-savers, two barriers stand out.

Among the respondents who struggle to save, 67 %, or two out of three, feel that they spend too much to fill in to put money aside.

While some are too extravagant, some of which are too indebted. Nearly half, 45 %, are not saving as they would like. They must first focus on the repayment of their debts.

Half of Canadians are safe to save in 2019

Side savings, the year 2019 should smile more Canadians. According to the report of the financial institution, only 12 % of the respondents agree that they will not make money this year.

Conversely, 52% of Canadians surveyed have some to spare in 2019.

Among those who expressed their intention to save, 31 % expect to save up to $ 10 000. They are 36 %, more than one in three, have no idea of the amount of money that they will be able to save.

Objectives of a more or less long-term

If the amount they have saved different, this is also the case for the reasons that motivate Canadians to save.

First, there are those who are saving to be able to use this money in the short term. Among them, 47 % say they want to use their savings to travel, 20 % to renovate their homes, and 15 % to be able to meet expenditure seasonally, such as holidays, anniversaries, birthdays or the holidays.

On the side of those who see long-term, 36 % of respondents say they save in an emergency fund, in order to be able to cope with unexpected expenses.

Retirement is another key driver of long-term savings, since they are also 36 % to save for it. We also know that Canadians have increasingly put money in a registered retirement savings plan (RRSP).

No detailed data

The survey from BMO was conducted online with 1,000 Canadians. The data have been weighted to represent the composition of the canadian population. However, BMO has not been able to provide the Journal of insurance detailed results by province or by age category.

As well, BMO reports that 29 % of people interviewed say they have accumulated more than $ 100,000 in savings. Impossible to know, however, the profile of people with such a level of savings.

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