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 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...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
SYS-CON Events announced today that Secure Channels 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. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
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...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
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.
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze 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. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.