More than one-third of Canadians (36%) do not have an investment account, finds a survey by Tangerine Investments. Further, just 4% of non-investors have considered opening one.
Why don’t Canadians invest? More than two-thirds (70%) say they don’t have enough money; 25% are worried about the risk of losing money; and 20% don’t know enough about investing.
Despite these findings, 67% of non-investors agree that investing should be a priority, even if they’re carrying debt, finds the survey. The reasons they want to invest are to retire (50%); grow their money faster (36%); and save for a big purchase like a child’s education, vacation or house (29%).
“Unfortunately, there’s a misconception out there that you need to be an expert with a lot of money to start investing, and this simply isn’t true,” says David McGann, director of Tangerine Investments.
Generational differences
Interestingly, 33% of up-and-coming adults (people aged 26 to 36) have considered or seriously considered opening an investment account, compared to 24% of established adults (people aged 40 to 54).
Further, the survey suggests that established adults may be facing more barriers than up-and-coming adults when it comes to investing. For example, they were more likely to say they don’t have enough money to start investing (75% vs. 62%).
An early start
The survey also questioned Canadians who are already investing; 72% started before the age of 34. And a greater number of up-and-coming adults having opened an investment account, compared to established adults (64% vs. 55%).
When asked why they started investing, 64% say to save for retirement, 56% for financial security, 45% to grow their money faster, and 23% to save for a big purchase, like a child’s education or vacation.
About the survey: From August 30 to 31, an online survey was conducted among 1,510 randomly selected Canadian adults. The margin of error is +/- 2.5%, 19 times out of 20.
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