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The Reason Why Canadians Save Money

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CIBC Poll: Beyond retirement – Trips and emergency funds top the list of  savings goals for Canadians

WHILE THE MAJORITY ARE SAVING FOR SOMETHING OTHER THAN RETIREMENT, FEW HAVE A STRUCTURED PLAN TO SAVE TOWARDS THOSE GOALS

TORONTO, /CNW/ – A new CIBC (TSX: CM) (NYSE: CM) poll finds that almost 60 per cent of Canadians are currently saving up for something other than retirement. Top savings goals include trips, emergency funds and home renovations. While over half of savers say they put funds aside regularly, few Canadians are taking advantage of automatic withdrawals to ensure they meet their savings goals. 

Key findings of the poll include:

  • 58 per cent of Canadians are actively saving for something other than retirement right now
  • 25 per cent of Canadians are currently saving for a trip
  • 17 per cent are saving for a rainy day, or emergency fund
  • 14 per cent are saving for home renovations
  • While the majority (54 per cent) of Canadians saving for something other than retirement say they set money aside regularly, only 14 per cent have funds withdrawn automatically from their account or paycheque
  • 61 per cent of those saving keep the funds in either a Tax Free Savings
  • Account (TFSA) (32 per cent) or a chequing or savings account separate from their everyday account (29 per cent)

“Our CIBC poll shows that Canadians want to save but they don’t always have a plan on how to achieve their specific savings goals,” says Veni Iozzo, Senior VicePresident, Deposits & Client Solutions at CIBC. “Knowing what you’re saving for and how much you need is a good first step, but having a financial plan to determine how much you can put aside and how often is important to help reach your goal faster.” Pay yourself first  Ms. Iozzo noted that despite it being common knowledge that setting up regular investment plans can provide some necessary discipline, most Canadians are trying to achieve their savings goals on their own. While more than half of those surveyed said they were actively setting aside money each month, only 14 per cent had set up an automatic withdrawal. ”If you really want to meet your savings goal, you need to commit to paying yourself first, by setting up automatic withdrawals,” says Ms. Iozzo. “If you wait until the end of the month to see what is left over, there may not be anything to spare.” Have a dedicated savings account Keeping savings separate from day-to-day spending is key. Having a separate account earmarked for savings makes it easier to watch your progress towards your goal and minimizes the likelihood that you will spend on something else. According to the CIBC poll, nearly one-quarter (23 per cent) of Canadians who are saving are doing so in their regular everyday accounts. ”While it is great to have savings goals, the risk in keeping all your money in a single account makes it more likely that you may use the money for everyday living expenses and may not attain your specific savings goal,” says Ms. Iozzo. “A TFSA is a good option for longer-term goals as you can save tax on any interest earned. For shorter-term goals, a separate account like the CIBC eAdvantage Savings Account can help you reach your goal faster.” Advice for focusing on saving ” Set up automatic withdrawals – Setting up a regular savings plan to withdraw smaller amounts regularly from your account will help you stay on track to reaching your goal. ” Use a separate account – Keeping your dedicated funds  separate account from your everyday accounts helps you avoid the temptation to use that money to pay bills or day-to-day expenses.” Stick to your plan – Once you have a plan in place, stick to it. If you fall off track, get back to your plan as soon as possible and keep making progress towards your goal.

KEY POLL FINDINGS

Percentage of top savings goals for Canadians:

Percentage of Canadians actively saving for something other than retirement right now, by region: From May 2nd to May 3rd 2014, Vision Critical conducted an online survey among 1,504 randomly selected Canadian adults who are Angus Reid Forum panelists. The margin of error-which measures sampling variability-is +/- 2.53%, 19 times out of 20. The results have been statistically weighted according to education, age, gender and region (and in Quebec language) Census data to ensure a sample representative of the entire adult population of Canada. Discrepancies in or between totals are due to rounding.

About CIBC

CIBC is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, and has offices in the United States and around the world. You can find other news releases and information about CIBC in our Media Centre on our corporate website at www.cibc.com.

SOURCE CIBC

Canadian business News

COVID-19: Canadian Entrepreneurs less pessimistic in April

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BC entrepreneurs less pessimistic in April

THE monthly Business Barometer index for British Columbia rose 8.2 points reaching an index of 46, according to the latest survey results from the Canadian Federation of Independent Business (CFIB). The low index continues to reflect the significant stress and challenges entrepreneurs face as the navigate the COVID-19 pandemic. As British ColumbIa looks ahead in developing an economic relaunch strategy, a small business lens is necessary to streamline the transition.

“The month’s barometer results indicate small business owners are feeling less pessimistic than they did in March,” said Muriel Protzer, Senior Policy Analyst, BC and the North, on Wednesday. “While ongoing financial support from government is helping keep many businesses afloat, those receiving the benefits cannot rely on them indefinitely and some continue to fall through the cracks.”

Additional survey data from CFIB finds that 83 per cent of businesses believe it is critical they make more sales soon to survive and become less reliant on government subsides (13 per cent disagree, 4 per cent unsure).

“The province of BC will play an integral part in transitioning businesses and workers off of government support programs as we look to reopen parts of the economy,” added Protzer. “Early preparation for a recovery phase is important to ensure businesses and residents are provided clear messaging on guidelines.”

Furthermore, 75 per cent of BC businesses are confident they could reopen quickly if current restrictions were lifted (19 per cent disagree, 6 per cent unsure). As the province looks to develop its economic recovery strategy, small business owners see the following initiatives to take priority:

  • Keeping taxes on small businesses at an acceptable level (88 per cent agree);
  • Reduce red tape affecting businesses (65 per cent agree);
  • Introducing campaigns encouraging consumers to shop at local businesses (62 per cent agree);
  • Continued financial help (57 per cent agree); and
  • Ensuring the availability of personal protective equipment and mass testing to help people feel safe (54 per cent agree).

Measured on a scale between 0 and 100, an index level above 50 means owners expecting their business’ performance to be stronger in the next year outnumber those expecting weaker performance. An index level of between 65 and 75 means that the economy is growing at its potential. This month, it is notable to see no provincial index above 50 points.

To view the full report, visit http://www.cfib.ca/barometer  

The provincial numbers for April were: Quebec (32.1), Newfoundland (32.1), New Brunswick (39.2), PEI (43.1), Manitoba (45.0), Nova Scotia (45.3), BC (46.0), Alberta (46.7), Saskatchewan (50.8), Ontario (52.6).

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Skilled labor is discussed in agrifoods sector at roundtable in B.C.

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Agrifoods producers met with the provincial government today to discuss skilled labor initiatives and human resource planning as part of a series of roundtables being held over the coming months with sectors highlighted in the BC Jobs Plan.

British Columbia’s agrifoods sector is one of the most diverse in Canada. It provides the province with a competitive advantage and a wide range of opportunities for growth and innovation in agriculture, commercial fishing, aquaculture and food and beverage.

The roundtables, co-hosted with industry associations and employers, aim to stimulate discussion and create awareness about how sectors can access skilled labour and satisfy human resource requirements, as a result of an aging population. B.C. has reached a tipping point with fewer young people entering the workforce than older workers leaving it. These demographic realities, together with economic growth, place significant pressure on key sectors to find innovative solutions to address skills shortages. Through BC’s Skills for Jobs Blueprint, the Province is helping British Columbians get the skills they need to be first in line for these job openings.

Roundtable participants were invited to share information and discuss the unique challenges faced by processors in the agrifoods sector, specifically related to recruiting and training a qualified workforce, the promotion of B.C. export-ready products internationally and identifying opportunities for growth.

The sector-specific roundtables are another way government is working to provide employers and industry the opportunity to ask and respond to questions and inform the provincial government of key labour issues.

Quotes:

Norm Letnick, Minister of Agriculture –

“B.C. food producers help keep our families healthy, our communities vibrant and our economy strong. The B.C. government is committed to working with B.C.’s agriculture industry to best meet their labour market needs and ensure local food production continues to grow in British Columbia.”

Rhonda Driediger, director and former chair, B.C. Agriculture Council –

“The economic survival of many B.C. farms and supporting agrifood businesses depends upon farmers’ access to labour. We need to understand the diverse employment opportunities that exist within agriculture. The B.C. Agriculture Council appreciates government assisting farmers to find, develop and train the workers we need to help produce all our agricultural products and continue the growth of our industry.”

Quick Facts:

  • B.C. has more than 1,800 food and beverage manufacturing operations around the province.
  • In 2014, the agrifoods sector generated almost $12.3 billion in total revenue.
  • British Columbia has some of the most diverse agrifoods industries in Canada, producing more than 200 agriculture commodities and 100 seafood species.
  • More than 75% of B.C. seafood is destined for export.
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Province of British Columbia affirms shipbuilding contracts

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Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour Shirley Bond has issued the following statement regarding shipbuilding contracts:

“As a coastal province, British Columbia has a vital interest in fostering its shipbuilding and industrial marine industries to keep our economy diverse, strong and growing. Shipbuilding and ship repairs represent billions of dollars of investment in B.C., creating thousands of jobs in our province.

“In 2011, Seaspan was named a successful bidder in the federal government’s competition under its National Shipbuilding Procurement Strategy (NSPS) to replace Canada’s aging non-combat navy, coast guard and Fisheries and Oceans Canada vessels.

“We now understand that the Davie shipyard in Quebec has made an unsolicited bid to the federal government for this procurement that has already been awarded to Seaspan. This is unacceptable.

“Since being named the successful bidder, Seaspan has already invested $170 million to modernize their Vancouver and Victoria shipyards and are progressing well on their NSPS commitments to Canada. Seaspan employs more than 350 tradesmen and women and upwards of 350 engineers, program and supply chain managers and other professionals in delivering on its commitments to the Canadian Coast Guard and Royal Canadian Navy.

“We fully expect that the non-combat package of work awarded to Seaspan under NSPS is respected by the federal government. That work includes three offshore fisheries science vessels; one offshore oceanographic science vessel; two joint support ships; one polar icebreaker, as well as up to five medium endurance multi-tasked vessels and up to five offshore patrol vessels.

“We are confident Seaspan can deliver on its contracts and are pleased to see Seaspan’s NSPS commitments on target and on track.

“Our government supports creating a sustainable shipbuilding industry in B.C. and maximizing opportunities, resulting from more than $7 billion in federal shipbuilding commitments.”

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