Highlights show that majority of Canadians are finding it difficult to save
TORONTO, Oct 3, 2016 /CNW/ - A recent Harris Poll Investor Survey commissioned by AGF Investments Inc. (AGF) found that more than half of those surveyed (54%) find it relatively difficult or very difficult to save in their current financial situation.
"One of the goals of this year's survey is to better understand the barriers to saving so that we can enable Canadians to reach their investment goals," said Judy Goldring, Executive Vice-President and Chief Operating Officer, AGF Management Limited. "We want to continue to build on the knowledge gained from previous surveys and to delve deeper into investor mindsets."
Canadians Finding it Difficult to Save
The survey found that the majority of Canadians (81%) report having some form of debt. Among those, close to half (48%) state they felt it is preventing them from saving. That number is higher for Millennials (59%) and for Gen Xers (54%).
Among those who have debt, living expenses (51%) and rent/mortgage payments (44%) are the most commonly mentioned factors preventing Canadians from saving.
Ideal Way to Save?
When asked "what is the ideal way to save," close to 3-in-5 (58%) of Canadians aged 18 to 49 say they would pay down debt first and then save.
"We want Canadians to know that it doesn't have to be an either/or situation. Regardless of how much life gets in the way, saving while paying down debt can have a significant impact on your personal balance sheet," added Goldring. For example, saving $200 a month at 7% can grow to nearly $100,000 in 20 years.
Value of Advice
A quarter (25%) of respondents who have debt have turned to family/friends for advice and guidance on debt management, while only 14% have approached a financial advisor.
"At AGF, we have always been strong advocates for the value of advice. These results remind us that working with a financial advisor is the key to understanding the barriers to saving," said Goldring.
It also supports research that shows the measurable value financial advisors provide their clients. For example, investors who work with financial advisors accumulate 2.5 to 3 times the wealth of those who do not, over a 15-year period.1
To review the first phase of AGF's 2016 Investors Survey, visit: AGF.com/InvestorSurvey
About AGF Management
AGF Management Limited is one of Canada's premier independent investment management firms with offices across Canada and subsidiaries around the world. AGF's products include a diversified family of mutual funds, mutual fund wrap programs and pooled funds. AGF also manages assets on behalf of institutional investors including pension plans, foundations and endowments as well as for private clients. With over $34 billion in total assets under management, AGF serves more than one million investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.
About the 2016 AGF Investor Survey
The 2016 AGF Investor Survey was conducted online among a sample of 1,210 Canadian household financial decision makers, ages 18 and older. Data findings are weighted by age, gender and region where necessary to bring them in line with their actual proportions in the Canadian adult population. The survey was administered from July 29 to August 10, 2016 by Harris Poll. Because the sample is based on those who agreed to participate in the Harris Poll panel, no estimates of theoretical sampling error can be calculated.
The information contained in this material is designed to provide you with general information related to investment alternatives and strategies and is not intended to be comprehensive investment advice applicable to the circumstances of the individual. We strongly recommend you to consult with a financial advisor prior to making any investment decisions.
This is not intended to provide tax advice. AGF Investments Inc. strongly urges investors to consult with a tax advisor to discuss their particular circumstances.
Publication date: September 21, 2016
1 Source: CIRANO, The Value of Advice Report 2012
Image with caption: "What's preventing you from saving - or saving as much as you'd like? (CNW Group/AGF)". Image available at: http://photos.newswire.ca/images/download/20160921_C3263_PHOTO_EN_781682.jpg
Image with caption: "Saving on a regular basis can have a significant impact on your personal balance sheet. The easiest way to make this commitment to your future self is to enroll in a pre-authorized chequing (PAC) plan. (CNW Group/AGF)". Image available at: https://photos.newswire.ca/images/download/20160921_C3263_PHOTO_EN_778679.jpg
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