BMO Investment Survey Finds Gen Z Are Canada's Most Engaged Generation For Tracking Financial Goals

TORONTO, April 6, 2022 /CNW/ - BMO's annual Investment Survey reveals that younger Canadians are demonstrating their financial savvy by regularly evaluating their financial goals and plans more than any other group – including Boomers. According to the survey, 62 per cent of Gen Z (aged 18-25) and 54 per cent of Millennials (age 26-41) review their goals at least quarterly, with 41 per cent of Gen Z and 29 per cent of Millennials doing so monthly. In comparison, only one third (36 per cent) of Boomers (aged 58-67) review financial plans at least once a quarter and only 15 per cent of them doing so monthly.

"It's exciting to see the next generation of Canadians building solid financial habits and establishing a foundation early," said Nicole Ow, Head, Retail Investments, BMO Bank of Montreal. "Real financial progress is a lifelong pursuit as our goals and circumstances change throughout our lifetime. We encourage Canadians of all ages to consider ways not only to grow their wealth and work towards immediate financial goals, but also to ask their advisor how they can align their investments with their values, define their longer-term goals, and protect and share their wealth with their loved ones and the causes that mean the most to them."

Financial Advice For The Next Generation

The survey revealed nearly half of Gen Z (44 per cent) and Millennials (51 per cent) rely on professional advice for their financial decisions, but those in this group also have their own distinct priorities and preferred sources of investment advice:

• Trusted Advisors: 47 per cent of Gen Z and 32 per cent of Millennials currently working with an advisor do so on the recommendation of a friend or family member.
• Social Media: A third (33 per cent) of Gen Z and 22 per cent of Millennials refer to financial influencers and social media for their investment decisions. In comparison, only seven per cent of Canadians over 55 rely on these sources.
• Barriers to Entry: Among younger Canadians with savings primarily held in cash, half of Gen Z (49 per cent) and close to two fifths of Millennials (39 per cent) say the primary reason for this is that they do not know how to invest.
• Prioritizing Investing: Millennials (21 per cent) and Gen Z (18 per cent) are more likely to contribute to their investment portfolios than put their money into a savings account compared to Gen X (13 per cent) and Boomers (10 per cent).
• Financial Independence: A quarter of Gen Z (26 per cent) and one fifth of Millennials (20 per cent) contributed to their TFSA this year in hopes of achieving financial independence as early as possible.

Plans for All Life Stages

While reassessing their financial plans and investments, more than half (52 per cent) of Canadians work with an advisor because they believe their advisor is better equipped to provide guidance to help them meet their goals; meanwhile, 28 per cent enjoy the customized financial plans their advisors have created for them. Among young Canadians, 18 per cent of Gen Z and 10 per cent of Millennials sought professional advice from a financial advisor for the first time during the pandemic, and 13 per cent of Gen Z and 10 per cent of Millennials changed their financial goals and plans such as starting a family, purchasing a home, or starting a new business.

"While the past two years have brought uncertainty and challenges, many Canadians of all ages were also able to find new opportunities, pursue new ventures and create new milestones," said Ms. Ow. "Partnering with a financial professional allows Canadians to build a customized plan to achieving their goals based on their current resources, prospective growth and risk tolerance."

BMO offers the following planning tips for Canadians at all life stages:

• Start planning early: Outlining short and long-term financial objectives and goals helps determine the appropriate investing and savings solutions to incorporate in a financial plan.
• Practice discipline: Manage spending, review budgets, and include any automatic contributions through pre-authorized contributions to savings plans as an expense. Monitoring spending with a monthly budget will allow flexibility to suspend or decrease the spending amount in the continuous savings plan when needed or increase the amount when a budget allows for it.
• Stress testing strategies: In the current inflationary environment, there is an opportunity to stress test all strategies in expectation of rate increases before any funds you've borrowed are due to be repaid.
• Plan for the unexpected: A good financial plan incorporates options than can prepare for the unexpected. These options can anticipate various financial situations and offer solutions to ensure the financial plan can still achieve its goals.
• Seek professional advice: A investment professional has the resources and expertise to monitor a retirement portfolio regularly and recommend investing and savings strategies based on financial circumstances, aversion to risk and long-term financial goals.

For more information on BMO's investment plans, opening an account, or other assistance please visit www.bmo.com/transfer.

The BMO Investment Survey was conducted by Pollara Strategic Insights via an online survey of 1,500 adult Canadians conducted between October 26th and 29th 2021. The margin of error for a probability sample of this size is ± 2.5%, 19 times out of 20.

About BMO Financial Group

Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $1.02 trillion as of January 31, 2022, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.

SOURCE BMO Financial Group

Media Contact: Anke Suwanda, Toronto, [email protected], [phone]