A majority of Canadians agree that they should be prioritizing saving money — but they aren’t, according to a CIBC survey.
Eighty-five per cent said they “need to save more money,” and 79 per cent of respondents aged 35 to 54 said they worry about not having enough funds to retire when they want to.
Yet, 65 per cent of those polled said they lack a detailed or regular savings plan; 26 per cent of those people “don’t really save” or “never save” at all. This is despite 82 per cent of respondents’ claims they could “cut back” each month by an average $360 “before feeling the pinch.”
“With consumer spending still strong and fueled by a long period of record low interest rates… very few Canadians are making savings a priority, which is concerning as we head into the holiday spending season,” David Nicholson, vice president of Imperial Service at CIBC, said in a press release.
Nicholson suggests a “give to yourself first” strategy by which a set sum of money is automatically deducted from a paycheque and put directly into a savings account.
“Paying yourself first is an easy and effective savings strategy,” Nicholson said. “For most people, it’s actually easier to start with a savings goal first, set an automatic savings plan to meet that goal, and then, simply spend what’s leftover.”
While perhaps a simple habit to adopt, only 15 per cent of Canadians make use of this strategy. Thirty-eight per cent, on the other hand, save a varied amount each month depending on what’s left over after spending.
The margin of error for CIBC’s online poll of 1,523 Canadian adults is plus or minus 2.5 per cent, 19 times out of 20.