Affordabilty still a key barrier to Canadians' investment planning: Scotiabank study

Affordabilty still a key barrier to Canadians' investment planning: Scotiabank 
study 


    --  64 per cent of Canadians cite affordability as a barrier to
        investing more, up from prior years
    --  Four-in-ten Canadians plan to contribute to an RRSP this tax
        year
    --  One-in-two Canadians started to invest before turning 30
    --  RRSPs and TFSAs remain popular investment vehicles

TORONTO, Jan. 15, 2013 /CNW/ - Scotiabank's annual Investment Poll shows 
affordability continues to be a barrier for Canadians hoping to increase their 
nest eggs before the March 1(st) RRSP contribution deadline (64 per cent, 
compared to 59 per cent in 2011 and 53 per cent in 2010). Like last year, 39 
per cent of Canadians say they plan to contribute to an RRSP for the 2012 tax 
year (unchanged from 2011).

The poll also found that fewer and fewer people feel they have already 
invested enough (19 per cent in 2012 versus 24 per cent in 2011 and 29 per 
cent in 2010). Of those investors who cite lack of affordability to investing 
more, most said they do not have a written financial plan (70 per cent), are 
not saving for retirement (77 per cent) and feel they are not on track to 
achieving their retirement goals (80 per cent).

"An investment may be more affordable than you think - the key is to get a 
solid financial plan in place to help overcome affordability issues," said 
Mike Henry, Scotiabank Senior Vice President and Head of Retail Payments, 
Deposits and Lending. "We urge the sixty-four percent who are concerned that 
they can't afford to invest this year to talk to us. We have experts in every 
one of our 1100 branches across the country who will work with them to put a 
plan in place that will help realize individual financial goals."

Encouragingly, the poll found that the number of Canadians who have not 
started investing has significantly declined since 2011 (17 per cent versus 21 
per cent). Consistent with last year, half of Canadians started to invest 
before the age of 30 years (51 per cent in 2012 versus 48 per cent in 2011). 
One-quarter of younger investors, those aged 18 to 34 years, have a financial 
plan (23 per cent).

When asked what major change they would make if they could do it all over 
again, four-in-10 Canadians (39 per cent) say they would begin investing at a 
much earlier age. As well, significantly more people say they would spend less 
and put more of their money into their investments (23 per cent versus 19 per 
cent in 2011).

"While Canadians rarely get an opportunity for a financial do-over, it is 
important they take advantage of the investment opportunities they currently 
have and find a strategy that will work," added Mr. Henry. "Within the 
framework of a good financial plan, even small contributions can have a big 
impact over time and get people to the place they want to be financially."

In line with last year's findings, the poll shows most Canadians have an RRSP 
(56 per cent versus 60 per cent last year) and/or a TFSA (44 per cent versus 
48 per cent last year). When it comes to other investment products, most 
people continue to have savings in a regular savings account (64 per cent), 
with half having mutual funds (48 per cent) and/or putting their savings in a 
high interest savings account (48 per cent).

"A good financial plan and investing regularly throughout life is a 
cornerstone recommendation of Scotiabank's Financial Literacy Strategy 
introduced last November," said Kaz Flinn, Vice President of Corporate Social 
Responsibility at Scotiabank. "The strategy encourages people to become 
lifelong financial learners in order to effectively manage the financial needs 
that come with different stages of life. Developing a financial plan with an 
advisor ensures a roadmap is in place to ensure financial readiness for life's 
ever-changing needs and challenges."

About the polling data
The 2012 Scotiabank Investment Poll was conducted online using Harris/Decima's 
proprietary panel. A total of 1,003 surveys were conducted from a random 
sample of panel members aged 18 years and over across Canada. The study was 
conducted from November 28th to December 13th, 2012.

About Scotiabank 
Scotiabank is one of North America's premier financial institutions and 
Canada's most international bank. With more than 81,000 employees, Scotiabank 
and its affiliates serve some 19 million customers in more than 55 countries 
around the world. Scotiabank offers a broad range of products and services 
including personal, commercial, corporate and investment banking. In December 
2012, Scotiabank became the first Canadian bank to be named Global Bank of the 
Year and Bank of the Year in the Americas by The Banker magazine, a Financial 
Times publication. With assets of $668 billion (as at October 31, 2012), 
Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more 
information please visit www.scotiabank.com.

Background:

Regional Breakdown

Top Barriers to Investing

 _____________________________________________________________________
|Reasons for not   |     |                                            |
|investing more    |Total|____________________________________________|
|                  |     |Atlantic|Quebec|Ontario|Man/Sask|Alberta|BC |
|__________________|_____|________|______|_______|________|_______|___|
|Can't afford it   |64%  |64%     |63%   |63%    |61%     |60%    |69%|
|__________________|_____|________|______|_______|________|_______|___|
|Already invest    |19%  |21%     |23%   |20%    |18%     |15%    |15%|
|enough            |     |        |      |       |        |       |   |
|__________________|_____|________|______|_______|________|_______|___|
|Don't have an     |     |7%      |5%    |8%     |12%     |11%    |10%|
|investment        |8%   |        |      |       |        |       |   |
|strategy          |     |        |      |       |        |       |   |
|__________________|_____|________|______|_______|________|_______|___|
|Need help or      |7%   |5%      |5%    |9%     |10%     |7%     |5% |
|advice            |     |        |      |       |        |       |   |
|__________________|_____|________|______|_______|________|_______|___|
|Lack discipline   |6%   |7%      |4%    |8%     |7%      |13%    |1% |
|__________________|_____|________|______|_______|________|_______|___|
|I'm not worried   |     |8%      |4%    |6%     |4%      |9%     |7% |
|about investing   |6%   |        |      |       |        |       |   |
|money             |     |        |      |       |        |       |   |
|__________________|_____|________|______|_______|________|_______|___|
|I'm retired/living|3%   |5%      |2%    |3%     |3%      |4%     |4% |
|off my pension    |     |        |      |       |        |       |   |
|__________________|_____|________|______|_______|________|_______|___|

Major Change in Investment Planning Behaviour

 _____________________________________________________________________
|Major change would|     |Region                                      |
|make to investment|Total|____________________________________________|
|plan              |     |Atlantic|Quebec|Ontario|Man/Sask|Alberta|BC |
|__________________|_____|________|______|_______|________|_______|___|
|I would begin     |     |34%     |34%   |38%    |45%     |44%    |43%|
|investing at a    |39%  |        |      |       |        |       |   |
|much earlier age  |     |        |      |       |        |       |   |
|__________________|_____|________|______|_______|________|_______|___|
|I would spend less|     |24%     |20%   |26%    |24%     |21%    |18%|
|and place more    |23%  |        |      |       |        |       |   |
|into my           |     |        |      |       |        |       |   |
|investments       |     |        |      |       |        |       |   |
|__________________|_____|________|______|_______|________|_______|___|
|I don't know what |15%  |19%     |18%   |15%    |16%     |9%     |13%|
|I'd change        |     |        |      |       |        |       |   |
|__________________|_____|________|______|_______|________|_______|___|
|Nothing, I would  |     |10%     |17%   |14%    |9%      |18%    |15%|
|not do anything   |14%  |        |      |       |        |       |   |
|differently       |     |        |      |       |        |       |   |
|__________________|_____|________|______|_______|________|_______|___|
|I haven't done any|     |13%     |10%   |7%     |6%      |8%     |11%|
|investment        |9%   |        |      |       |        |       |   |
|planning yet      |     |        |      |       |        |       |   |
|__________________|_____|________|______|_______|________|_______|___|

Age Began Investing

 __________________________________________________________________
|Age Began      |     |Region                                      |
|Investing      |Total|____________________________________________|
|               |     |Atlantic|Quebec|Ontario|Man/Sask|Alberta|BC |
|_______________|_____|________|______|_______|________|_______|___|
|Under 20       |11%  |12%     |12%   |12%    |11%     |9%     |10%|
|_______________|_____|________|______|_______|________|_______|___|
|20-24          |20%  |18%     |20%   |26%    |12%     |19%    |8% |
|_______________|_____|________|______|_______|________|_______|___|
|25-29          |20%  |19%     |20%   |20%    |18%     |25%    |17%|
|_______________|_____|________|______|_______|________|_______|___|
|30-39          |19%  |17%     |18%   |18%    |26%     |14%    |26%|
|_______________|_____|________|______|_______|________|_______|___|
|40 and older   |14%  |18%     |14%   |12%    |17%     |13%    |14%|
|_______________|_____|________|______|_______|________|_______|___|
|Haven't started|17%  |16%     |17%   |14%    |15%     |18%    |26%|
|investing yet  |     |        |      |       |        |       |   |
|_______________|_____|________|______|_______|________|_______|___|





For media inquiries: Diana Hart P: 416 866 7238 E:diana.hart@scotiabank.com

SOURCE: Scotiabank

To view this news release in HTML formatting, please use the following URL: 
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CO: Scotiabank
ST: Ontario
NI: FIN ECOSURV 

-0- Jan/15/2013 11:00 GMT


 
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