Eighty-five per cent of Canadians agree that they 'need to save more money', but nearly two-thirds (64 per cent) are not making savings a priority, according to the findings of a new CIBC poll released Nov. 21.
The poll also found that while most admit they could get by with less money, few do, and many say 'extra money' is for 'pleasure or enjoyment'.
"With consumer spending still strong and fueled by a long period of record low interest rates, the study shows that very few Canadians are making savings a priority, which is concerning as we head into the holiday spending season," says David Nicholson, Vice-President, Imperial Service, CIBC. "This is the time of year when many of us make room in our budget for spending on gifts, Black Friday and Cyber Monday sales and holiday parties, but don't think twice about how little we've saved until regret kicks in with our New Year's resolutions."
In addition, 79 per cent of those surveyed aged 35 to 54 worry about not having enough money to retire when they would like to.
The top obstacles to saving include: not earning enough income (46 per cent); unexpected expenses (29 per cent); and the struggle to pay everyday expenses (24 per cent).
Nicholson warned that with interest rates expected to rise and people living longer in retirement, Canadians need to do more than simply spend less.
Delaying makes it harder
"The real question is, how can you afford not to save? Every day that you delay starting a savings plan, the harder and more expensive it gets to meet your goals later on in life," he says. "The sooner you start a savings plan the sooner your money can be put to work for you."