A new survey reveals variation in savings goals depending on priorities per age group
A new poll commissioned by education savings specialist Universitas Financial has revealed a positive trend in savings and investment among Quebecers.
The percentage of respondents who save their money has risen from 75% in 2016 to 80% in 2018. Quebecers were also found to have diverse investment preferences depending on their savings goals.
“Each family's savings goals vary according to priorities,” said Pierre Lafontaine, vice-president of Customer Experience and Strategic Development at Universitas Financial. “That being said, many families prioritize education, and the RESP is the best investment out there to help them put their kids through post-secondary education.”
According to the survey, 48% of the families in Quebec reported investing in a Registered Education Savings Plan (RESP) in 2018, 3% more than the percentage reported in 2016. Quebecers have also been placing greater emphasis on RESPs in recent years: 20% said they prioritize saving in an RESP in 2018, compared to 17% in 2016, 11% in 2015, and 8% in 2014.
The 2018 poll also looked at respondents’ preference for other types of investments. After debt repayment (51%), Quebecers said cited the TFSA (49%) and the RRSP (43%) as their preferred savings vehicles, followed by unregistered investments (30%).
The figures, Universitas said, reflect a better annual distribution of savings by Quebecers. Data on the average amount saved per investment type also shows improvement in diversification:
- TFSA - $7,383
- RRSP - $7,922
- RESP - $7,086
- Property - $14,055
- Unregistered investments - $10,218
Looking at the savings priorities for different age groups, the survey found that 18-34 year olds most favoured long-term savings (50%), far ahead of purchasing a home (38%) as well as education and retirement savings combined (26%).
Among the 35-54 cohort, retirement savings took top priority (58%) over long-term savings (37%), education (23%), and the purchase of a home (11%). Respondents aged 55 and older, meanwhile, also prized retirement savings most (50%), followed by long-term savings (20%).
When asked which investment should be prioritized among families, respondents for all age groups combined chose debt repayment (25%), followed by the RESP (23%) and the RRSP (21%). Among those with children, the percentage that favoured the RESP increased to 33% against 22% for RRSPs.
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