Survey reveals financial goals impacted by high costs and limited investment confidence in Canada
A recent survey by TD Bank Group reveals that Canada’s evolving economic climate is significantly impacting Canadians' saving and investing approaches as they strive toward their financial goals.
This survey highlights key trends, challenges, and insights into Canadians’ financial strategies, indicating that economic pressures are shaping financial behaviours across the country.
According to the survey, less than half of Canadians (49 percent) believe they are saving enough to achieve their financial goals, with a notable portion expressing concern over limited financial knowledge.
Nearly half (45 percent) of respondents reported a lack of confidence in their investment knowledge, pointing to this as a major obstacle in their financial journey.
The survey sheds light on specific barriers Canadians face in reaching their financial objectives. The high cost of living impacts the ability of 65 percent of respondents to meet their financial goals, while nearly one-third (30 percent) report not having an investment plan.
Among those without a plan, 29 percent feel they lack sufficient savings to justify a personalized plan, and 20 percent admit to not knowing how to begin.
Investing patterns show room for growth, with only 58 percent of Canadians making investments at least once a year, and 34 percent indicating they have never invested.
For those who feel their long-term investments are ineffective, nearly half (48 percent) expressed a desire for guidance from a financial professional, believing this would boost their confidence in meeting financial goals.
Pat Giles, vice president of Saving and Investing Journey at TD, said, “Canadians are feeling the impact of the current economic climate in how they approach their investments, and that's why it's more important than ever to seek trusted advice.”
Giles noted the positive influence of financial support, stating that Canadians are more likely to achieve financial goals with the right guidance, which can aid in both short- and long-term financial planning.
In light of today’s financial pressures, many Canadians are turning towards cash savings over investments.
More than a third (35 percent) of Canadians are contributing only to savings accounts, rather than diversifying with options like Tax-Free Savings Accounts (TFSAs), Registered Retirement Savings Plans (RRSPs), or First Home Savings Accounts (FHSAs).
Nevertheless, over two in five Canadians (44 percent) acknowledge the benefits of improved financial planning.
This sentiment is particularly strong among younger Canadians, with 59 percent of Gen Z and 55 percent of Millennials recognising the potential of structured financial planning, compared to 43 percent of Gen X and 32 percent of Boomers.
Remarkably, 68 percent of Gen Z respondents reported consistent, at least annual, investing—the highest rate across any age demographic.
Giles also commented on the challenges of balancing savings and spending, suggesting that financial goals are attainable without large initial contributions.
According to Giles, “Setting financial goals doesn’t require a large amount to start; it’s about cultivating a habit of investing and sticking to it.”
With the approach of tax season, the survey found that only 30 percent of Canadians feel confident about when to contribute to an RRSP versus a TFSA.
TD offers personalized support through TD Personal Bankers, who can guide Canadians in understanding savings options, developing tailored financial plans, and enhancing their investment knowledge.
Additionally, TD provides various tools to support Canadians in their financial planning journey:
- TD Goal Builder offers customized investment advice tailored to savings goals, whether for retirement, education, a home, or other major purchases.
- TD Financial Planning Direct provides a remote, end-to-end wealth management experience, from account setup to comprehensive financial planning.
- TD Ready Advice Hub supplies information and articles on diverse financial topics, helping Canadians expand their understanding of saving and investing.
