Inflation: Canadians reduce their savings contributions

Inflation has prompted a third (36%) of Canadians to reduce their savings contributions, according to a BMO Financial Group survey released Tuesday.

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Almost a quarter of Canadians surveyed, 22%, said they have reduced their retirement savings contributions because of the rising cost of living.

The survey found that 61% of Canadians who don’t have financial goals want to set them.

“With the cost of living rising on a daily basis, saving can be difficult to prioritize,” commented Gayle Ramsey, Head of Everyday Banking and Customer Acquisition at BMO.

To help Canadians save and “stay on track,” BMO recommends, “Set goals and then save automatically.” The bank advises you to talk to an expert to find out how to manage your money according to your situation.

The poll was conducted between March 30 and April 25, 2022, among 3,403 adults in Canada and the United States.