Retirment News
Canadians unsure if they will achieve financial goals, according to Scotiabank/Ipsos-Reid Poll
- Only 38% of Canadians strongly agree that they are satisfied with their
ability to achieve their financial goals
- Less than one in three Canadians have a formal written financial plan
- Canadians with formal written financial plans and who invest regularly
more likely to be satisfied with their ability to achieve their
financial goals
- Paying down debt is the number one financial goal for Canadians
TORONTO, Feb. 26 /CNW/ - As the deadline for the 2003 RRSP season
approaches, a majority of Canadians are unsure if they will be able to achieve
their financial goals according to a new survey released today by Scotiabank
and Ipsos-Reid. Six in 10 Canadians (59%) strongly agree that setting
financial goals is very important to them, but only 38% strongly agree that
they are satisfied with their ability to achieve these goals.
The Scotiabank/Ipsos-Reid poll found that fewer than half of Canadians
(48%) use advice from professional financial advisors in achieving their
goals. Furthermore, less than one in three (30%) have a formal written plan.
A significantly higher percentage of Canadians (45%) with formal written
financial plans are more likely to be satisfied with their ability to achieve
their financial goals than those without a formal plan (34%). Furthermore, the
study found that Canadians who make monthly contributions to savings or
investments are more satisfied with their ability to achieve their financial
goals (42%) than those who contribute less than once per year (32%).
"Canadians have a strong desire to achieve their financial goals, but are
concerned that they won't reach them," said Karen Fisher, President and CEO
Scotia Securities Inc. "Clearly, more Canadians need to take action and
establish a written financial plan to set out their goals along with a plan to
achieve them one step at a time."
Canadians' top financial goals
Paying down debt is the number one financial goal, with 77% of Canadians
saying it is very important to them. Yet, only 39% of those saying this an
important goal report that they are personally very close to achieving this
goal.
Making the best investment choices is the second most cited financial
goal with 62% of Canadians saying it is very important. Twenty-nine percent of
those asked indicate that they are very close to achieving this goal.
Saving for retirement comes in third with 60% saying it is very
important, but only 25% believe they are very close to achieving that goal.
"Paying down debt is Canadians' number one priority. To address this
priority there are direct financial solutions available to Canadians to help
them lower their borrowing costs, such as the Scotia Total Equity(TM) Plan,"
said Ron Laursen, Senior Vice-President, Day to Day Banking, Scotiabank. "We
often think of financial goals in isolation, such as "I'll pay off the house
and then I'll move on to saving for retirement." In reality, a solid financial
plan can help you work on achieving a number of goals at the same time -
whether it's a plan to lower borrowing costs, making the best investment
choices or setting up a plan to make regular contributions towards retirement,
a nest egg or a child's education."
"The key is planning," said Laursen. "Although half of Canadians seek
financial advice from professionals, only 30% have a written financial plan in
place. The plan doesn't need to be elaborate - even a page of goals along with
concrete steps to achieve them can be an important start."
"For example, we offer the Scotiabank ican(TM) plan, which is designed to
help identify financial goals and rank them in order of importance. It is
quick, easy-to-use and can be completed at a branch or on the Scotiabank
website," added Laursen.
Canadians saving and investing habits
Forty-three percent of Canadians state that they make regular monthly
contributions toward their savings and investments. A further 18% indicate
that they add to their savings or investments regularly several times per
year, while 17% state that they make annual lump sum contributions.
"Contributing regularly is a great financial strategy - especially if
it's a monthly habit," said Fisher. "Many Canadians believe that they should
wait until they have a substantial amount of money to invest. In fact, it is
much better to get into the habit early and take advantage of compounding
returns over the long-term. Even a few hundred dollars a year when you are in
your early 20s will put you much further ahead financially than someone who
waits until their late 30s to begin."
These are some of the findings of an Ipsos-Reid poll conducted on behalf
of Scotiabank between February 4th and February 6th, 2003. The poll is based
on a randomly selected sample of 1,000 adult Canadians. With a sample of this
size, the results are considered accurate to within (+/-) 3.1 percentage
points, 19 times out of 20, of what they would have been had the entire adult
Canadian population been polled. The margin of error will be larger within
regions and for other sub-groupings of the survey population. These data were
statistically weighted to ensure the sample's regional and age/sex composition
reflects that of the actual Canadian population according to the 2001 Census
data.
An expanded version of the polling information has been posted on the
Scotiabank website at www.scotiabank.com. Please look under the "What's New?"
section of the homepage.
About Scotiabank
----------------
Scotiabank is one of North America's premier financial institutions and
Canada's most international bank. With approximately 49,000 employees,
Scotiabank Group and its affiliates serve about 10 million customers in some
50 countries around the world. Scotiabank offers a diverse range of products
and services including personal, commercial, corporate and investment banking.
With C$296 billion in assets (as at October 31, 2002), Scotiabank trades on
the Toronto (BNS), New York (BNS) and London (BNV) Stock Exchanges. For more
information please visit www.scotiabank.com.
About Ipsos-Reid
----------------
Established in 1979, Ipsos-Reid is one of North America's leading market
research and public opinion companies. Founded by Dr. Angus Reid, Ipsos-Reid
is a $70 million company which has conducted extensive market and social
research in 80 countries and in 40 languages, and serves clients around the
world through more than 300-professionals and 1,000 data collection staff in
11 offices. The company is a member of the Paris-based Ipsos Group, ranked
among the top ten research companies in the world, with specialties in
advertising, media, customer satisfaction, public opinion and market research.
Visit www.ipsos-reid.com
Ends
For further information: Sean Hamilton, Scotiabank Public Affairs,
(416) 933-1344, sean_hamilton@scotiacapital.com; John Wright, Senior
Vice-President, Ipsos-Reid Public Affairs, (416) 324-2900
"
