Canadians still join their savings accounts despite the market and economic volatility, but they are also making adjustments to their savings habits at the same time.
The disinvestment of the actions of the United States, the increase in contributions and the discussion of savings strategies with a professional are among the adjustments that Canadians have made this year to keep their savings accounts growing, according to data from 1.5 million customers of Sun Life Financial Inc.
The Canadians took money from the US stock market. During the first quarter to a rhythm not seen from the Covid-19 pandemic. But, in general, the average savings contributions amounted to $ 9,500 per year, which increases six percent from 2022.
“The ‘Buy Canadian’ feeling that gained popularity earlier this year can also have an impact on how people are investing their money,” said Dave Jones, senior vice president of group retirement services in Sun Life, in a statement.
“While some are adjusting their finances, it is encouraging to see that they are not taking their money reactively from the market. Some clients are changing their assets of US actions to more conservative options. They are committed and taking their financial future seriously while sailing through turbulence.”
Canadian investors are also observing greater to the objectives of target date (TDFS), which are specifically designed for withdrawal and adjust the allocation of assets such as retirement approaches. These plans generally focus on the most volatile stock market at the beginning and slowly move to a more conservative bond strategy over time.
The report says that 42 percent of the balances of members of the SUNE Life Plan are linked to TDFS, compared to 29 percent in 2018. The TDFs have also surpassed the funds of non -objective date in eight of the last 10 years.
The majority of Canadians fear that they are left without retirement money, according to CD Howe Institute, which said that this is partly due to having multiple savings accounts in financial institutions, leaving them insecure how much money they have stored and how much more they need to retire.
The senior partner of CD Howe, Kathryn Bush, said that Canada needs to implement a pension board owned by the government that presents all savings among the suppliers, similar to those of Sweden, Denmark and the Netherlands.
“How can Canadians make optimal decisions if they do not have a direct way of seeing how savings and rights translate into monthly income?” Bush asked in a report. “We need a modern and accessible tool that gives them a precise image of their expected retirement income, without the need to be an expert.”
Sun Life also urges Canadians to take advantage of savings plans in the workplace, since members generally retire two years before non -members.
He also advised Canadians to create a personalized financial plan to meet their needs and talk to a financial professional to obtain advice.
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The president of the United States, Donald Trump, says he will not issue another extension on reciprocal tariffs beyond August 1.
In a publication on its social media platform, Trump wrote that “all money will be overcome and will be paid as of August 1, 2025, extensions will not be granted.”
Trump had previously planned a deadline for agreements this week, but he is giving nations another three weeks to reach the negotiating table.
Trump previously told reporters that the deadline of August 1 “was not 100 percent firm.”
Read more here.
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- The amount of wealth that comes out of Canada would be revealing for many Canadians
- Rentals are falling in Calgary, Toronto, Vancouver and Halifax as the supply swells, says CMHC
- The signs that the actions are overheating a warning for a budding rally
If you are concerned that the agitation and geopolitics of the market may affect your financial planning, it can be time to seek the advice of a licensed professional, writes Allan Norman De Alined Capital Partners Inc. If you are in the stage of reviewing the objectives of life or seeking value in assets, a professional can help you put it on the right path. Read more here.
Are you worrying enough for retirement? Do you need to adjust your wallet? Are you starting or making a change and asking how to generate wealth? Are you trying to get to the end of the month? Send us a line at wealth@postmedia.com with your contact information and the essence of your problem and we will find some experts that will help you while writing a story of family finance about it (we will keep it outside it, of course).
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Today’s position was written by Ben Cousins ​​with additional reports of Financial Post, Canadian Press and Bloomberg.
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