But the younger generation is getting it right - Close to 7 in 10 (68%) Gen Z are investing consistently on a yearly basis – the highest across any age demographic
TORONTO, Nov. 14, 2024 /CNW/ - Canada's shifting economic climate continues to influence Canadians' approach to saving and investing, as they work towards their financial goals.
A recent survey by TD Bank Group reveals that less than half (49 per cent) of Canadians believe they are saving enough to reach their financial goals. Of those surveyed, respondents cited a lack of financial knowledge as a major barrier, with 45 per cent of Canadians not feeling confident in their investment knowledge.
The survey further outlines what's keeping Canadians from meeting their financial goals:
High cost of living is impacting 65 per cent of Canadians' ability to meet their financial goals.
Nearly a third (30 per cent) of Canadians don't currently have an investment plan. Among those lacking an investment plan, 29 per cent feel they don't save enough money to warrant a personalized plan, while 20 per cent say they don't know where to begin.
Only 58 per cent of Canadians are making investments at least once a year with data showing that a third of Canadians (34 per cent) have never invested.
Almost half (48 per cent) of those who feel their long-term investments aren't set up effectively say they'd be more confident in reaching their financial goals if helped by a financial professional.
"It's no secret that Canadians are feeling the impact of the current economic climate in how they approach their investments, and that's why it's more important than ever to seek trusted advice," said Pat Giles, Vice President, Saving & Investing Journey at TD. "It's encouraging to see that Canadians would feel more confident reaching their financial goals if helped by a financial professional. Having the right financial support can make a significant difference when it comes to planning for both short and long-term financial goals."
Today's economic realities have led to an increase in Canadians keeping their cash in savings accounts instead of investing.
The survey also found that Canadians are relying more on their savings accounts to cope with growing financial pressures, opting for cash liquidity over investment accounts. Over a third (35 per cent) of Canadians are contributing to a savings account only instead of contributing to a Tax-Free Savings Account (TFSA), Registered Retirement Savings Plan (RRSP), or First Home Savings Account (FHSA).
However, more than two in five (44 per cent) Canadians recognize they could realize their financial goals through improved financial planning. Younger Canadians (Gen Z – 59 per cent and Millennials – 55 per cent) feel this more strongly than Gen X (43 per cent) or Boomers (32 per cent). Interestingly, close to 7 in 10 (68 per cent) Gen Z have consistently invested funds at least annually – the highest across any age demographic.
"Balancing competing saving and spending priorities can be challenging," said Giles. "It's possible to enjoy the present while also investing and saving for the future. Setting financial goals doesn't require a large amount to start; it's about cultivating a habit of investing and sticking to it. A TD Personal Banker can help you build a plan based on your unique needs and the amount you would want to contribute. No amount is too small to start saving or investing."
Understanding your options
With tax season upon us, less than a third (30 per cent) of Canadians feel confident in knowing when to contribute to an RRSP versus a TFSA. A TD Personal Banker can help Canadians understand the different savings options available to them, help them develop a plan suited to their financial goals, educate them on getting started in investing and help to expand their financial knowledge.
TD also offers customer tools and resources to help them establish their financial goals, set personalized financial plans, and track their progress as they work towards achieving them:
Using TD Goal Builder, a TD Personal Banker can provide customized investment advice to help customers work toward their financial goals, whether they're saving for retirement, a child's education, a home or another major purchase.
TD Financial Planning Direct offers end-to-end wealth experience delivered remotely. From opening accounts to developing a comprehensive financial plan, customers can take charge of their financial well-being, wherever they are.
The TD Ready Advice Hub has information and articles available on a variety of financial topics and investing.
About the survey
This Maru Public Opinion survey conducted on behalf of TD Bank was undertaken by the sample and data collection experts at Maru/Blue. 2,695 randomly selected Canadians adults and are Maru Voice Canada online panelists were surveyed from October 10th to October 14th 2024. The results of this study have been weighted by education, age, gender, and region (and in Quebec, language) to match the population, according to Census data. This is to ensure the sample is representative of the entire adult population of Canada. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 1.9%, 19 times out of 20. Discrepancies in or between totals when compared to the data tables are due to rounding.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves over 27.5 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America's Most Convenient Bank?, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in The Charles Schwab Corporation; Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among the world's leading online financial services firms, with more than 17 million active online and mobile customers. TD had $1.97 trillion in assets on July 31, 2024. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges. TD Wealth Financial Planning Direct is a service offering from TD Wealth Financial Planning, a division of TD Waterhouse Canada Inc., a subsidiary of The Toronto-Dominion Bank.
