Canadians are largely split when it comes to investing their savings or keeping them in cash, according to a new Bank of Montreal survey released Monday.

The annual RRSP study, conducted by Pollara Strategic Insights, found that nearly half of millennials prefer to hold savings in cash compared to those from Generation X and baby boomers, who are more likely to invest their savings.

Regional data also indicated a split, suggesting that Canadians living in the Atlantic provinces are more likely to keep their savings in cash than those living in the Prairies (51 per cent and 43 per cent, respectively).

While there are benefits to both cash and investing strategies, Robert Armstrong, director of Multi-Asset Solutions at BMO Global Asset Management, said an investment strategy focused too heavily on cash and short-term investments can miss out on long-term opportunities.

“Every Canadian is unique with their personal investing strategy,” Armstrong said in a release Monday. “However, historical evidence suggests individuals who hold short-term investments, such as cash, to meet their long-term goals clearly miss out on creating longer-term wealth."

Although many Canadians are investing, most believe financial advisors are better equipped to help them reach their financial goals, according to the survey. It found that only one-third of Canadian investors are confident in their knowledge of the market, while a healthy majority (67 per cent) could not identify the differences between a registered retirement savings plan (RRSP) and a tax-free savings account (TFSA).

"As more Canadians grow to understand the importance of long-term investing, there are opportunities to engage professionals to ensure their investments and portfolios are aligned with their goals, timelines and risk tolerance," Armstrong said.  "All Canadians should strive to develop a comprehensive financial plan.”

The survey was conducted online between November 26 and December 3, 2019, with a sample of 1,500 Canadian adults. The margin of error for a probability sample size of 1,500 is ± 2.5 per cent 19 times out of 20.