Nine out of 10 respondents admit to needless spending
LÉVIS, QC, Nov. 8, 2013 /CNW Telbec/ - According to the latest survey conducted by SOM, Canadians are seriously lacking on the savings front. Over 3,300 internet users across the country were polled for this survey funded by Desjardins Group in an effort to gather information for the Desjardins Personal Finance Index.
A survey showed that Canadians' personal finance knowledge and habits have changed very little over the past two years. Therefore, questions regarding their savings habits were added to the 2013 personal finance management survey.
Here are some telling results:
- 60% of respondents think they are not saving enough.
- 94% admit to spending needlessly.
- 47% do not have an emergency fund that could cover their expenses for more than three months.
- 50% of respondents nearing retirement (between 55 and 64 years old) admit that they do not have a retirement plan.
- 31% know very little or nothing about the savings products offered by their financial institution.
"These results are cause for concern. They show that we need to double our efforts to encourage Canadians to save more to prepare for unexpected circumstances, achieve their goals and ensure a comfortable retirement," said Michel Verreault, Vice-President of Marketing and Sales Support for Desjardins Group. "We need to create savings products that meet consumer needs and really showcase them to attract as many Canadians as possible. We also need to increase people's knowledge of personal finance."
Since November is Financial Literacy Month, Desjardins urges individuals to learn more about personal finance, and sound financial habits on its online self-evaluation tool, accessible through http://www.desjardins.com/en/coopmoi/.
Developing personal finance knowledge, slowly but surely
The Desjardins Personal Finance Index allows its users to assess their aptitude for personal finance management by covering two basic elements: habits and knowledge. Since its inception in 2011, the index has been updated every year to allow users to monitor their progress. Results for 2013 do not show a significant change from 2012 and 2011, which reinforces the survey's findings that Canadians' knowledge of personal finance management has remained unchanged over the past two years.
The survey was held between June 4 and 14, 2013, and a total of 3,394 adult Internet users across Canada were polled (1,564 in Quebec, 887 in Ontario and 943 spread across the rest of the country).
About Desjardins Group
Desjardins Group is the fifth largest cooperative financial group in the world with assets close to $205 billion. To meet the diverse needs of its members and clients, Desjardins offers a full range of products and services through its extensive distribution network, online platforms and subsidiaries across Canada. The group has one of the highest capital ratios and credit ratings in the industry, and outranks all American banks as the fourth safest and strongest bank in North America according to Global Finance magazine and Bloomberg News respectively. In keeping with their cooperative nature, Desjardins Caisses' surplus earnings are reinvested into the communities they serve.
SOURCE: Desjardins Group
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