CPA Canada study shows how retirement, budgeting, and savings decisions go on in face of pandemic
Despite the financial realities brought about by the COVID-19 pandemic, Canadians are on the whole still feeling confident and maintaining their saving and spending strategies, according to CPA Canada.
Drawing from a national Nielsen survey that was conducted in September, CPA Canada’s 2020 Canadian Finance Study found that of the 2,008 respondents, four fifths believe in their ability to stick to a budget (78%) and successfully manage their debts (81%).
Pandemic or not, saving is proving to be a keystone component of Canadians’ financial habits, with 63% of respondents saying they hold a savings account, 60% investing into a TFSA, and 53% putting money into an RRSP or retirement savings plan. More broadly, nearly half (49%) of respondents said they’ve modified their savings strategy in the past five years.
Looking at Canadians’ retirement timeframes, the survey found 24% of pre-retired Canadians intending to leave the work force in 25 years at the earliest, with the same proportion hoping to retire at some point in the next decade.
As it stands, 40% of respondents planning to retire indicate they’ll work after age 65, even if it’s just part-time work. Among those Canadians who plan to work past age 65, 43% said it’s because they can’t afford to stop working. Three fifths (60%) of respondents said they’ve put money aside for retirement sometime in the past five years, and 46% have consulted a financial advisor about their retirement savings.
Budgeting is also top-of-mind for Canadians as they try to stay on pace to achieve current and future financial goals. In the past five years, six tenths (61%) of respondents said they have cut back on everyday expenses, while nearly half (49%) said they’ve developed a household budget. A strong majority appear to have a firm grip on their fiscal situation, as 85% of those with household budgets say they usually or always adhere to their budget.
“There's no doubt the COVID-19 pandemic has increased financial difficulties and concerns for many Canadians,” said Doretta Thompson, CPA Canada's Financial Literacy Leader. “It's encouraging to see many Canadians taking action to stay afloat during the fiscal turmoil of today but also looking to the future.”
