Almost 60% of Canadians are currently saving for something other than retirement, finds a CIBC poll. Top savings goals include trips, emergency funds and home renovations. While over half of savers put funds aside regularly, few are taking advantage of automatic withdrawals to ensure they meet their goals.
Key findings of the poll include:
- 58% are actively saving for something other than retirement right now;
- 25% are saving for a trip;
- 17% are saving for a rainy day or emergency fund;
- 14% are saving for home renovations;
- 14% have funds withdrawn automatically from their account or paycheque; and
- 61% keep the funds in a TFSA.
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Here are some tips to help your clients save.
1. Pay yourself first
Veni Iozzo, senior vice-president, Deposits & Client Solutions at CIBC, says despite it being common knowledge that setting up regular investment plans can provide some necessary discipline, most Canadians are trying to achieve their savings goals on their own.
“If you really want to meet your savings goal, you need to commit to paying yourself first, by setting up automatic withdrawals,” says Iozzo. “If you wait until the end of the month to see what is left over, there may not be anything to spare.”
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2. Have a dedicated savings account
According to the poll, 23% who are saving are doing so in their regular everyday accounts. But having an account earmarked for savings makes it easier for clients to watch their progress and minimizes the likelihood that they’ll spend on something else.