Welcome!

News Feed Item

BMO Household Savings Report: Canadians Saved Average of $8,764 in 2013; Set Sights Higher for the Year Ahead

- Canadians saved an average of $8,764 last year; set savings target higher at $9,635 for 2014, an increase of 10 per cent

TORONTO, ONTARIO -- (Marketwired) -- 01/23/14 -- According to the second annual BMO Household Savings Report released today, Canadians saved an average of $8,764 last year. As well, many are setting their sights higher for 2014, with Canadians planning to set aside an average of $9,635 in the year ahead.

The report, conducted by Pollara, revealed:


--  2013 marked a significant drop in the percentage of Canadians who did
    not save anything, from 28 per cent in 2012 to 17 per cent in 2013,
    meaning more Canadians are saving a portion of their income
--  The most common barriers for Canadians for meeting their savings goals
    include insufficient income to save (69 per cent), followed by high
    expenses (67 per cent) and management of debt (50 per cent)
--  Canadians plan to save an average of $9,635 in 2014, with the majority
    using a chequing account or Registered Retirement Savings Plan (RRSP)
    (66 per cent and 55 per cent, respectively)
--  Half (47 per cent) will use a Tax Free Savings Account (TFSA), while
    one-third (31 per cent) will use a high-interest savings account.

According to BMO Economics, the most recent official data show Canadians were able to set aside more in 2013 than the year prior, and forecast that Canadians will maintain the pace in 2014.

"Canadians increased their savings last year in response to higher long-term interest rates and with one eye on elevated debt," said Sal Guatieri, Senior Economist, BMO Capital Markets. "We expect the saving rate to remain above 5 per cent in 2014, as households are borrowing at the slowest rate in three decades and long-term interest rates are likely to drift higher due to a stronger economy and a reduction in Federal Reserve stimulus."

"Canadians appear to be setting their savings sights higher in 2014, which is encouraging. However, it's apparent that various factors, such as high expenses and debt, could prevent them from meeting their savings goals," said Christine Canning, Head of Everyday Banking, BMO Bank of Montreal. "With these barriers in mind, we advise those who are falling short to take simple steps, such as putting aside smaller amounts in a separate account and using automatic payments in order to get started."

Ms. Canning added that even the smallest of contributions today can end up making a big difference long-term.

Savings Goals for 2014

The report also identified the most common savings goals among Canadians:


--  Saving for a vacation was identified as the top priority for 2014 (48
    per cent)
--  Building a rainy day/emergency fund ranked second for the year ahead (43
    per cent), with retirement savings coming in third (39 per cent).

Personal Savings By Region and Gender

The report also explored personal saving differences across regions and between genders, and found:


--  British Columbians expect to save the most in 2014 ($15,117), followed
    by Albertans ($12,478)
--  Quebeckers plan on saving the least ($6,179)
--  Men plan, on average, to save $11,228 in 2014, whereas women plan to
    save an average of $7,989.

----------------------------------------------------------------------------
                  Canada Atlantic  Quebec  Ontario Prairies  Alberta    B.C.
----------------------------------------------------------------------------
Amount Saved in
 2013            $ 8,764 $  6,609 $ 6,017 $  9,625 $  9,691 $  9,711 $11,224
----------------------------------------------------------------------------
Planned Savings
 for 2014        $ 9,635 $  7,344 $ 6,179 $  9,570 $  9,095 $ 12,478 $15,117
----------------------------------------------------------------------------

--------------------------------
                     Men   Women
--------------------------------
Amount Saved in
 2013            $10,567 $ 6,961
--------------------------------
Planned Savings
 for 2014        $11,228 $ 7,989
--------------------------------

For more information about how BMO can help make saving more affordable, stop by a BMO branch today or click here.

The Pollara survey was completed between January 10th and 14th, 2014, with an online sample of 1,002 Canadians. A probability sample of this size would yield results accurate to +/- 3.1 per cent, 19 times out of 20.

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 $537 billion as at October 31, 2013, and more than 45,000 employees, BMO Financial Group provides a broad range of personal and commercial banking, wealth management and investment banking products and solutions.

Contacts:
Media Contacts:
Matt Duffin, Toronto
(416) 867-3996
[email protected]

Valerie Doucet, Montreal
(514) 877-8224
[email protected]

Laurie Grant, Vancouver
(604) 665-7596
[email protected]

Web: www.bmo.com
Twitter: @BMOMedia

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists l...
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, provided the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” used open source attack tools that are free and available for download by anybody. Attendees learned where to find and how to operate these tools for the purpose of testing their own IT infrastructure. The...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
The modern software development landscape consists of best practices and tools that allow teams to deliver software in a near-continuous manner. By adopting a culture of automation, measurement and sharing, the time to ship code has been greatly reduced, allowing for shorter release cycles and quicker feedback from customers and users. Still, with all of these tools and methods, how can teams stay on top of what is taking place across their infrastructure and codebase? Hopping between services a...
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...