Savings goals missed due to lack of planning: BMO

Most Canadians have a savings goal in mind, but many are falling short due to a lack of proper planning, according to a BMO Bank of Montreal survey.

The BMO Household Savings Report found that Canadians are aiming to save an average of $9,859 in 2013. However, 31% have no plan to help them achieve their savings goals. Rather, they simply put aside what they can. Further, more than half of Canadian savers (52%) feel they are not saving enough to meet their goals, with 36% of this group lacking a savings plan.

On the positive side, the report found:

• 25% have a fixed financial plan in place that includes making regular monthly contributions to their savings
• 35% have a rough plan that includes regular contributions

The survey also revealed that those who have a fixed savings plan in place are the most likely to be saving for their retirement (52%); followed by those with a rough plan (48%). Those with no fixed or rough savings plan in place are the least likely to be saving for their retirement (31%).

According to BMO Economics, Canadians still need to ramp up their savings in coming years — from the current 3%-to-4% range to just under 9% — if they hope to meet their long-term financial goals.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.