According to the BMO Household Savings Report, more Canadians are making saving a habit by using a fixed savings plan that includes monthly contributions. In fact, one-in-three Canadians (31 per cent) have a fixed savings plan in place heading into 2015, a year-over-year increase of 19 per cent.
However, the report also found that 19 per cent did not save anything in 2014. Also, 40 per cent do not feel they are saving enough to meet their goals for the coming year, with one in three (31 per cent) citing their lack of a plan as a barrier.
Furthermore, according to Statistics Canada, Canada’s household saving rate hit a five-year low of 3.6 per cent in the fourth quarter of 2014. Over the last 10 years, the average household savings rate is 4 per cent, down from 7.9 per cent during the 1990s.