Over 40% of Quebecers did not Save or Invest Last Year

Among those who did invest, 68% favoured traditional
savings vehicles, such as the RRSP or the TFSA

QUEBEC, Jan. 19, 2015 /CNW Telbec/ - In this time of economic uncertainty, a recent survey conducted by the firm CROP for Universitas, education savings specialist, revealed that nearly half of Quebec's population (42%) did not save or invest last year. This reality is particularly noticeable among 18-34 year olds, of whom more than half (55%) did not save during this period. Moreover, the survey shows that those who did invest favoured the more traditional savings vehicles, including the RRSP (36%) and the TFSA (32%). Investments in stocks, the Registered Education Savings Plan (RESP), and real estate, for their part, represented a minor percentage, namely 11%, 8 % and 5%, respectively.

A comparison of the 2013 results for the same survey revealed that the average amount Quebecers invested in the main types of savings vehicles (RRSP and TFSA) has remained relatively stable. The RESP investment, for its part, has significantly decreased in 2014.

Savings Vehicle	2013	2014	Increase/Decrease %
RRSP	$3,042	$3,311	+ 9%
TFSA	$3,456	$3,220	- 7%
RESP	$1,601	$1,108	- 31%

The RESP: An investment vehicle often overlooked!
According to the survey, when respondents consider their current financial situation, they are proportionally more likely to believe they should favour the TFSA (30%) as their first choice, followed by the RRSP (21%) and then the RESP (4%). Furthermore, 72% of the respondents declared having invested less than $1,000 in their RRSP in 2014, whereas Statistics Canada reported the Canadian average to be $1,474.

According to Universitas, parents in Quebec should take advantage of the benefits of investing in an RESP for their children, since they too, will reap the rewards of this investment once their children are ready to pursue a vocational, college or university post-secondary education. "Even if the RESP is an investment vehicle designed to accumulate funds for a child's post-secondary education, many parents are unaware that the RESP can be a solid and secure long-term savings plan for themselves as well," explains Sonia Dupèré, Associate Vice-President of Customer Service and Sales Administration. "The capital invested in an RESP is returned in full to the subscriber, who can then choose to give this sum to the child as additional funds for school, or transfer it to an RRSP and enjoy the benefits of both the RESP and RRSP," adds Ms. Dupèré.

The survey also reveals that knowledge of RESPs in Quebec is limited; 66% of the respondents are unaware that both the provincial and federal governments offer generous grants for RESP investments. Only 7% of the respondents know that the total amount of these grants can reach $12,800* per child. Moreover, the majority of the respondents (60%) are unaware that the RESP lifetime contribution (investment) limit is set at $50,000.

*Canada Education Savings Grant (CESG) of 20% to 40%. Quebec Education Savings Incentive (QESI) of 10% to 20%. Canada Learning Bond (CLB) totalling up to $2,000. Amounts based on family income. Certain conditions apply.

More highlights regarding the preferred investment vehicles in Quebec:

• There are twice as many respondents aged 34-54 years (13%) than respondents aged 18-34 years (6%) that saved in an RESP in 2014.
• Respondents with a higher level of education seem more likely to invest in an RESP.
• Nearly a third (27%) of the respondents with a family income equal to or exceeding $100,000 invested over $5,000 last year, whereas only 9 % did so in 2012.
• More Francophone respondents did not invest (45%) than Anglophone respondents (29%).
• Men have a greater tendency to invest in an RRSP (42%) than women (31%), who prefer investing in a TFSA (35%) compared to men (28%). Interestingly, both sexes seem to invest equally when it comes to the RESP, with 8% for men and 7% for women.

The survey was conducted online by the CROP firm via a Web panel, from October 16 to 20, 2014. A total of 1,000 questionnaires were completed. Results were weighted to reflect the distribution of Quebec's adult population based on gender, age, region, language, education level, and the socio-cultural values of the respondents. The same survey was previously conducted from January 16 to 21, 2013, using an equivalent population sample.

About Universitas

Established in 1964, Universitas is an RESP industry leader at the service of families across Quebec and New Brunswick. With the mission to promote post-secondary education through savings and educational assistance payments (EAPs), Universitas has $1 billion in assets under management, has paid out more than $500 million in EAPs and returned savings, and currently has some 208,000 beneficiaries. For more information, visit universitas.ca.

SOURCE Gestion Universitas inc.

Contact persons: Lydia Juliano | Julie Deschambault, Matom Communication, [email protected] | [email protected], 514 949-1446 | 514 891-8645; Tina Fournier Ouellet, Senior Advisor, Communication and Public Relations, Universitas Management Inc., [email protected], 418 651-8977, ext. 2320