Canadians Falling Short on Savings Goals Due to Lack of Planning: BMO Report
- Canadians plan to save $9,859 this year, but three-in-ten have no
plan in place to help them get there
- More than half are currently not putting aside enough money to meet
their savings goals
- BMO encourages Canadians to create a fixed savings plan to ensure
they achieve long-term financial success
TORONTO, ONTARIO -- (Marketwire) -- 02/22/13 -- Most Canadians have a
savings goal in mind, but many are falling short possibly due to a
lack of proper planning, according to a BMO Bank of Montreal survey.
The BMO Household Savings Report found that Canadians are aiming to
save an average of $9,859 in 2013; however, three-in-ten (31 per
cent) have no plan at all to help them achieve their savings goals.
Rather, they simply put aside what they can. Further, more than half
of Canadian savers (52 per cent) feel they are not saving enough to
meet their goals, with one-third (36 per cent) of this group lacking
a savings plan.
"We commend Canadians who are committed to making saving a priority
this year and would encourage them to create a financial plan to
assist them in reaching their goals," said Ernie Johannson, Senior
Vice President, Personal Banking, BMO Bank of Montreal. "Having a
plan in place is key to achieving both short and long-term financial
On the bright side, the report found:
-- One-quarter (25 per cent) have a fixed financial plan in place that
includes making regular monthly contributions to their savings, and;
-- 35 per cent have a rough plan that includes regular contributions.
The survey also revealed that those who have a fixed savings plan in
place are the most likely to be saving for their retirement (52 per
cent); followed by those with a rough plan (48 per cent). Those with
no fixed or rough savings plan in place are the least likely to be
saving for their retirement (31 per cent).
According to BMO Economics, Canadians still need to ramp up their
savings in coming years - from the current three to four per cent
range to just under nine per cent - if they hope to meet their longer
term financial goals.
"It can be challenging to manage multiple financial priorities, such
as saving for your child's education, paying off debt or investing in
your retirement," said Ms. Johannson. "To help build a balanced
savings approach, consider meeting with a financial professional to
put a plan in place that can help you balance achieving these
important goals and managing day to day living expenses."
Ms. Johannson added that BMO offers the BMO Smart Saver Account - a
high interest savings account that allows for unlimited deposits and
transfers into and out of the account and free access to BMO
MoneyLogic(TM) - an online personal financial management tool to help
track everyday expenses. Currently the BMO Smart Saver account offers
a 1.2 per cent interest rate - the highest rate offered among
Canada's major financial institutions for a full-service savings
account without minimum balance requirements.
As part of its ongoing commitment to 'Making Money Make Sense', BMO
has introduced various tools to help Canadians effectively manage
their personal finances, including BMO MoneyLogic, BMO by
Appointment, BMO SmartSteps, BMO SmartSteps for Parents and BMO
SmartSteps for Business.
The BMO Household Savings Report was conducted via a Pollara online
survey between January 10th and 15th, 2013, with a sample of 1,000
Canadians. A probability sample of this size would yield results
accurate to +/- 3.1 per cent, 19 times out of 20. Data has been
weighted by region, gender, and age, based on the most recent Census
figures, so that it is representative of all adult Canadians.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a
highly diversified North American financial services organization.
With total assets of $525 billion as at October 31, 2012, and more
than 46,000 employees, BMO Financial Group provides a broad range of
retail banking, wealth management and investment banking products and
Jessica Park, Toronto
Ronald Monet, Montreal
Laurie Grant, Vancouver
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