For Canadian women, freedom from debt means financial success: survey
Westerners are more likely to have a financial plan than Easterners
Thursday, November 13, 2008
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How do Canadian women define financial success? According to the 2008 TD Waterhouse Female Investor Poll, 37% of Canadian women say being debt-free is the definition of financial success, while only 17% define financial success as “having enough money for retirement”. Short-term achievements such as “having money to buy anything I want” (23%) also outrank retirement savings as a measure of financial success.
The most common step that women take to reach their financial goals is to follow a budget to manage their spending (55%). This compares with only 25% who have sought investment advice from a professional advisor.
“The fact that most women concentrate on short-term planning, budgeting and goal-setting is not surprising, it may be an even more natural response in times of economic turmoil,” said Patricia Lovett-Reid, senior vp, TD Waterhouse, in a release. “While getting your spending under control is important, it’s not enough. Without a long-term investment plan, we cannot achieve a comfortable, worry-free retirement.”
For Lovett-Reid, developing an investment strategy can go a long way in making women feel more successful about their finances. “Contrary to what some women might believe, getting more engaged in the world of investing provides a sense of empowerment and accomplishment. Burying our heads in the sand does not.”
The survey also found that the incidence of women having a formal financial plan declines from west to east. Thirty-one per cent of British Columbia and Prairies poll respondents have a financial plan compared with 23% for Ontario, 19% for Quebec, and 18% for Atlantic Canada. The national average is 24%.
As women age, their attention naturally shifts from debt reduction to consumption. More say they see success in such things as “having money to buy anything I want or need” (31% of those aged 56-69 vs. a 23% average for all age categories) and “having money to travel” (18% of those aged 56-69 vs. 13% average).
More than three-quarters of women (76%) have their own investment assets, and the average value of their personal investment portfolios is $73,100.
The national online poll was conducted between September 18-25, 2008 by TNS Canadian Facts among 1,094 Canadian women aged 25-69 who have sole or shared responsibility for household financial planning or investment decisions. It is a comprehensive annual study of Canadian women’s attitudes towards investing.
IE
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