Retirement pushing Canadians to sock away more cash during recession

Canadians are socking away more money and spending less than people of many other industrialized nations in the current global economic downturn, a new survey suggests.

Canadians are socking away more money and spending less than people of many other industrialized nations in the current global economic downturn, a new survey suggests.

The push to save is driven in part by a belief among almost one-third of Canadians that the recession will mean a delayed retirement, according to the survey from international bank ING Direct.

The global report released Tuesday suggested 77 per cent of Canadians have saved at the same pace or more in the past six months, which is just one percentage point behind the first-place Austrians.

Overall, Canadians were better savers that people in the United States, which came in third with 72 per cent of those surveyed saying they saved the same or more in the past six months.

However, more Americans had increased their savings than Canadians in recent months.

The survey found 60 per cent of Canadians said they were saving the same amount they did six months ago, while 17 per cent increased their savings. That compares to 47 per cent of Americans who were said they were saving the same sums, and 25 per cent having added more to their piggy banks.

The survey, conducted six weeks ago in nine countries, comes the same day the U.S. Commerce Department said Americans’ personal savings rate fell to 4.6 per cent in June, after jumping to 6.2 per cent in May, which was the highest since February 1995. The rate dropped as low as one per cent at times last year.

That compares to a 4.7 per cent savings rate for Canadians in the first quarter of 2009, down from 4.9 per cent in the fourth quarter of 2008, according to Statistics Canada. The rate was down to 1.9 per cent in the fourth quarter of 2007.

In the ING survey, 23 per cent of Canadians said their savings dropped in the past six months, compared to a 28 per cent drop in the U.S.

ING Direct president and CEO Peter Aceto said Canadians have remained more optimistic about their finances than people in other countries “and they’ve taken charge of their own economic well-being.”

The survey comes as Canada is said to be coming out of one of the worst recessions in its history.

Just Posted

Sunny weather improves farmers’ prospects

A harvester kicking up dust. It’s a picture that will bring a… Continue reading

Rural transit pilot project being considered

Penhold, Innisfail and Red Deer County councils to decide whether to go ahead with project

Red Deer fire station up for sale

Home sweet home at Fire Station 4

Most surveyed Innisfail residents give urban chickens the thumbs up

Town of Innisfail will discuss whether to allow backyard chickens on Monday

‘Mom I’m in trouble:’ Canadian, Brit face 10 years in jail for alleged graffiti

GRANDE PRAIRIE, Alta. — The mother of a Canadian who was arrested… Continue reading

Coyote on the prowl near Penhold

This coyote was out on the prowl in a field just west… Continue reading

Sky’s the limit as Calgary opens testing area for drones and new technologies

CALGARY — The sky’s the limit as the city of Calgary opens… Continue reading

Hi Mickey, ‘Bye Mickey: 6 Disney parks on 2 coasts in 1 day

ORLANDO, Fla. — Heather and Clark Ensminger breathed sighs of relief when… Continue reading

Court weighs ‘Apprentice’ hopeful’s suit versus Trump

NEW YORK — President Donald Trump’s lawyers hope to persuade an appeals… Continue reading

StarKist admits fixing tuna prices, faces $100 million fine

SAN FRANCISCO — StarKist Co. agreed to plead guilty to a felony… Continue reading

Annual pace of inflation slows to 2.2 per cent in September: Statistics Canada

OTTAWA — The annual pace of inflation slowed more than expected in… Continue reading

Jury finds Calgary couple guilty in 2013 death of toddler son

CALGARY — A jury has convicted a Calgary couple in the death… Continue reading

Most Read