Canadians don’t think they’re saving enough: BMO
Household savings rate hit a five-year low of 3.6% in the fourth quarter of 2014, StatsCan said.
TORONTO — A new survey of Canadians found almost 20% of respondents didn’t put aside a dime in 2014 and a further 40% felt they were not saving enough.
This year’s household savings report from BMO Financial Group says 31% of respondents had a fixed savings plan in place that included monthly contributions.
That was a significant increase from the previous year when only 26% reported implementing such a plan.
The BMO study also revealed that a third had less than $10,000 in savings.
Money for vacations was the most common goal among savers, while 43% were saving for retirement and 40% for emergencies.
Statistics Canada has found the household savings rate hit a five-year low of 3.6% in the fourth quarter of 2014.
Over the last 10 years, the average household savings rate was just 4%, down from 7.9% in the 1990s.
The BMO survey was conducted between March 13 and March 16 with an online sample of 1,002 Canadians.
© 2015 The Canadian Press