3-in-10 Canadians Investing Less Because of Economic Uncertainty: WealthRocket Survey
- 30% of Canadians are investing less due to the economic uncertainty over the last two years.
- 55% of Canadians say their top investing goal is retirement savings, followed by generating income (43%), and building wealth (43%).
- 50% of young Canadians (18-24) feel that values-based investing is very important.
TORONTO, Sept. 7, 2023 /CNW/ - A new WealthRocket survey reveals 3-in-10 Canadians are investing less due to the economic uncertainty over the past two years. Factors such as inflation and rising interest rates have prompted these cutbacks.
Drop in risk tolerance and investments
The economic turbulence of the past two years has 30% of Canadians investing less money. The same number (30%) also report a lower investment risk tolerance due to the COVID-19 pandemic, specifically.
"Fear tends to override rational thinking," says David O'Leary, WealthRocket's personal finance expert. "So people stop investing or sell their investments in times where it feels like there's uncertainty. It's definitely the wrong thing to do if you don't need to."
Top investment goals
55% of all respondents — whether they're currently investing or plan to one day — say retirement savings is their top investment goal, followed by generating income and building wealth (both 43%), and purchasing a home (24%).
Younger Canadians tend to prioritize generating income and building wealth, whereas middle-aged and older Canadians tend to prioritize retirement savings.
Values-based investing more important to younger Canadians
Those 18-24 show the strongest support for socially responsible investing, with 50% saying investing according to their values is "very important." This sentiment is less pronounced among Canadians 45+, hovering around 34%.
"There's much more of an awareness now of how the companies we buy our products and services from have an impact on the world around," says O'Leary. "Times have changed. So, you have to change your mindset, too, when it comes to investing."
Survey methodology
Data collected via an online Pollfish survey of 1,200 Canadians (18+) conducted between August 15-16, 2023. An equal number of respondents from each age group were surveyed. Estimated margin of error: +/- 3%.
About WealthRocket
WealthRocket is a Canadian personal finance website focused on credit cards, banking, investing, budgeting, and more. Our mission is to empower Canadians to get the most out of their money.
SOURCE WealthRocket
Rebecca David, [email protected].
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