More than half of Canadians surveyed (54%) find it relatively difficult or very difficult to save in their current financial situations, says a recent Harris Poll Investor Survey commissioned by AGF Investments Inc.
Further, this third annual investor survey finds the majority of Canadians (81%) report having some form of debt. Among those, close to half (48%) say this debt is preventing them from saving—that number is higher for millennials (59%) and for Gen Xers (54%).
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Among those who have debt, living expenses (51%), and rent or mortgage payments (44%) are the most commonly mentioned factors preventing Canadians from saving. Student loans are also a problem (32%).
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Ideal way to save?
Nearly three in five (58%) of those surveyed between the ages of 18 and 49 say they would pay down debt first and then save.
But, ” it doesn’t have to be an either/or situation,” says Judy Goldring, executive vice-president of AGF Management Limited. “Saving while paying down debt can have a significant impact on your personal balance sheet.” For example, she adds, saving $200 a month at 7% can grow to nearly $100,000 in 20 years.
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Value of advice
A quarter (25%) of respondents who have debt have turned to family and friends for advice on debt management, while only 14% have approached financial advisors.
But, says Goldring, investors who work with financial advisors can accumulate 2.5 to three times the wealth of those who don’t, over a 15-year period.
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Knowing, communicating and pricing your value: Part 2
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