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Canadians unable to meet savings goals

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Over half of Canadians feel that they are not saving enough for retirement. This unnerving finding came to light in a recent Bank of Montreal (BMO) survey which sought to gauge Canadian’s current saving habits.

The report, ‘The BMO Household Savings Report’ found that Canadians were striving to save an average of $9,859 this year but 31 percent of those surveyed said they were unsure of how they were going to do so. Having no plan to achieve their goal, many reported that they were simply “putting aside what they can.”

A positive aspect of the report found that 25 percent of Canadians utilized a fixed financial plan where they devoted regular monthly contributions to their savings. Thirty-five percent have a rough plan that includes regular contributions.

The current turbulent economic times have caused many across the globe to do away with discretionary spending which, unfortunately, saving for retirement through defined contribution plans, life insurance and annuity products, fall under.

Ernie Johannson, senior vice president, personal banking, BMO, said in a statement, “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.”

The report was culled from an online poll conducted by Pollara between January 2013.