Canadians worry about their money, their health and their families during the COVID-influenced RRSP season. Annual survey conducted for Questrade reveals investment trends and changes during pandemic
TORONTO, Feb. 18 2021 (GLOBE NEWSWIRE) – As Canadians focus on their investments during this COVID-influenced RRSP season, an annual study by Leger (www.leger360.com) in the name of Questrade (www.questrade.com) unveiled compelling findings about the trends and changes that Canadians are likely to make when they invest.
“As part of our ongoing commitment to improving the financial security of Canadians, we set out to uncover the issues that preoccupy us today, their potential impact on investing, and what we can do to help investors on their journey to investment. financial security, ”said Edward Kholodenko, President and CEO, Questrade. “Unsurprisingly, most of those surveyed chose money, health and family as their top 3 concerns. We also saw some behavioral trends of note.
Investment trends and attitude change
Despite the pandemic, research has shown that Canadians continue to be very committed to contributing to their retirement savings, while evidence suggests investors are placing importance on their investments going further.
- 69% of respondents who already have an RRSP to contribute the same amount as last year (or more) to their RRSP this year, demonstrating an unwavering commitment to their retirement
- The number is even higher among TFSA holders, with 85% planning to contribute more or the same amount to their TFSA as last year.
- 50% of respondents said given the impact and uncertainty during the pandemic, they are more likely to invest for the long term / for retirement
- 44% of respondents are actively looking for low-cost options this RRSP season
- 39% invest more this year, for better returns
“The results may reflect the current low interest rate environment we are experiencing,” says Kholodenko. “It should be noted that this year’s research has shown an ongoing concern – and a glaring lack of knowledge – regarding fees, mutual funds and the option of ETFs. This would strongly indicate the need for continuous training and awareness, ”he adds.
The survey indicated that awareness of exchange-traded funds (ETFs) as a viable investment option remains low, even though ETFs generally have much lower fees, and the money invested in ETFs has increased. quickly and began to replace traditional investments in mutual funds.
Fees and mutual funds: a lack of knowledge
- 51% of respondents agreed that a 2% fee for a mutual fund is high, while 38% more said they didn’t know
- Surprisingly, almost one in two people who invest in mutual funds admitted that they did not know what fees they are paying for their mutual funds.
ETF: a viable investment option
- 21% of respondents say they are more open to investing in ETFs
- 11% said ETFs have lower fees so they can keep more of their money
- 9% said they had heard of ETFs recently and wanted to try investing and see how they performed
- 6% think ETFs are the new and best way to invest
- 42% were not yet willing to invest in ETFs
- a majority said their main reason was that they didn’t know what an ETF is
- 37% more said they ‘don’t know’ if they are more open to ETFs
Switch to upcoming online investing
- 51% of respondents said they were more likely to invest online this year than physically go to a branch
- 22% said they are likely to switch to an online investment provider rather than a bank
- It was twice as likely for those under 35
When asked why:
- 48% of respondents said they do everything else online, so why not invest online too
- 34% said they need to get a better return on their money
- 24% said they had more free time to do it themselves
- 20% were more comfortable because their friends and family were investing online
“We are likely to see a much more pronounced shift in online investor behavior this year, as both our research and recent activity indicate. What remains important is that investors be aware of their options and the factors that impact their long-term retirement, before contributing to RRSPs and TFSAs, ”continued Mr. Kholodenko. He adds, “We remain committed to helping Canadians save more of their money for retirement while securing their financial future.
An online survey of 1,500 Canadians was conducted between January 15 and 18, 2021, using Leger’s online panel. No margin of error can be associated with a non-probability sample (i.e. a web panel in this case). For comparison purposes, a probability sample of 1,500 respondents would have a margin of error of ± 2.5%, 19 times out of 20. Leger’s online panel has approximately 400,000 members nationwide and has a 90% retention rate. Rigorous quality assurance measures allow Léger to meet the high quality standards set by the company. As a result, its methods of collecting and storing data exceed the standards set by WAPOR (The World Association for Public Opinion Research). These measures are applied at all stages of the project: from data collection to processing, including analysis.
About Questrade, Inc.
Questrade (www.questrade.com) is the fastest growing online brokerage firm in Canada. It is transforming the Canadian financial services industry by leveraging technology to reduce fees while providing a viable alternative to traditional financial investment options, allowing Canadians to keep more of their money. As a leader and innovator in financial services, Questrade is a trusted ally who advocates for consumers, focused on improving value. With 21 years of challenging the status quo as a leader in non-bank online brokerage in Canada, $ 25 billion in assets under administration and over 200,000 accounts opened each year, Questrade and its companies offer products and services. financial services: securities, foreign currency investments and online wealth management. Questrade was named one of Canada’s Best Managed Companies for the ninth consecutive year, achieving Platinum status. For more information visit www.questrade.com or on social media @Questrade.
Questrade, Inc. is a registered securities dealer, member of the Investment Industry Regulatory Organization of Canada (IIROC) and member of the Canadian Investor Protection Fund (CIPF).
About Questrade Wealth Management, Inc.
Questrade Wealth Management Inc. (“QWM”) provides professional investment management services through Questwealth Portfolios (www.questrade.com/questwealth-portfolios). QWM is an exempt market dealer, investment fund manager and portfolio manager. QWM is a wholly owned subsidiary of Questrade Financial Group Inc.
For more information, research statistics, visuals or to arrange an interview with Questrade or Leger 360, please contact Susan Willemsen of The Siren Group Inc. Tel. : 416-461-1567 or m. 416-402-4880. E-mail: [email protected] or visit www.thesirengroup.com and @thesirengroup.