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
As cloud adoption continues to transform business, today’s global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.
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.
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Although it has gained significant traction in the consumer space, IoT is still in the early stages of adoption in enterprises environments. However, many companies are working on initiatives like Industry 4.0 that includes IoT as one of the key disruptive technologies expected to reshape businesses of tomorrow. The key challenges will be availability, robustness and reliability of networks that connect devices in a business environment. Software Defined Wide Area Network (SD-WAN) is expected to...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of (at least) three separate application components: the software embedded in the device, the back-end service, and the mobile application for the end user’s controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target –...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...