Almost half of Canadians (45%) don’t have an emergency savings fund, meaning an unexpected expense could have them dipping into RRSPs or taking on debt, finds a CIBC poll.

Read: How to protect emergency savings

Additional findings include:

  • Canadians aged 45-64 are more likely to be prepared for an emergency, with 60% reporting they have emergency savings;
  • The likelihood of having an emergency savings fund declines among younger Canadians—only 51% aged 18-44 have emergency savings.

“For younger Canadians who are just starting out financially, building an emergency fund should be a priority, even if it’s only a small amount that you build on over time,” says Christina Kramer, executive vice president, retail distribution and channel strategy, CIBC.

Read: The true cost of debt

And an emergency savings fund should be separate from other savings accounts. Your clients should contribute to it regularly, and it shouldn’t be touched for anything except emergencies.

Read: Debt denial still runs deep

Here are some tips to help clients:

  • Have three months of income saved for emergencies;
  • Structure your savings to ensure you’re meeting your goals (e.g. you may wish to contribute to a registered account for retirement savings, but a more accessible account for emergency savings);
  • Adjust savings contributions every time your household cash flow changes, and continue to contribute the same percentage of your income to various savings goals.