Canadian women less confident,
more concerned about investing
- TD Waterhouse Female Investor Poll finds more than half (54%)
worried about investments vs. 47% last year
- Despite growing concerns, few seek professional investment
advice or develop a plan
- Those with a financial plan feel significantly more financially
successful
TORONTO, Oct. 30 /CNW/ - Canadian
women investors are less confident today than a year ago, but this
concern is not leading to action, says the 2008 TD Waterhouse
Female Investor Poll, a comprehensive annual study of Canadian
women's attitudes towards investing.
"Our poll results indicate that female
investor confidence has declined year-over year and that women are
becoming more conservative and risk-averse," says Patricia
Lovett-Reid, Senior Vice President, TD Waterhouse. "But
this worry is not yet translating into greater involvement in the
world of investing."
Researchers used a simple formula (Engagement +
Satisfaction = Confidence) to analyze responses to two specific
questions: how engaged are you in investing, and how do you feel
about your investments. From the data gathered, they arrived at a
'Confidence Map' of the Canadian female investor. This year's map
shows significantly more women are concerned about their
investments than they were in 2007 (54% vs. 47%).
Two-thirds of women (67%) describe themselves as
"detached" from investing; that is, paying little
or no attention to financial markets and having little, if any,
involvement with investing. While this is consistent with last
year's findings (70%), a higher proportion of the
"detached" group this year are more concerned about
the state of their investments (40% in 2008 vs. 36% in 2007).
"With the waning confidence of Canadian
women investors, it is surprising that more than three-in-four
Canadian women still don't have a formal financial plan. Such a
plan is the first and most important step to getting one's
financial house in order and developing a long-term strategy for
success."
The poll results indicate a significant
relationship between having a plan and feeling financially
successful. For those who have a plan, 82% feel very or somewhat
successful about their finances. Only 48% of those women who have
no financial plan feel the same way.
"What these results tell us is that there
is a direct correlation between having a financial plan and
financial peace of mind," says Lovett-Reid. "The
real question for Canadian women investors is whether current
economic conditions will cause them to become even more detached
from the world of investing, or whether it will finally encourage
them to become more engaged, to seek professional advice and to
build a long-term plan. In my view, a higher level of engagement
would not only give women investors a sense of purpose and
empowerment in these anxious times, but would also significantly
improve their long-term financial prospects."
More Key Findings:
- Almost two-thirds of women (65%) say that the long-term goal of
saving for a comfortable retirement is "very
important." Despite this, only 20% are "very
confident" they will be able to save enough to ensure a
comfortable standard of living in retirement and only 25% have
sought professional investment advice.
- The 2008 results also show a sharp rise in the number of women
who say they are taking less risk when they invest. In the years
2005, 2006 and 2007, those who reported taking less risk held
steady at 7%. In 2008, the percentage jumped more than two-fold to
15%.
- Most poll respondents do not appear to have an organized
strategy for achieving financial success, focusing instead on
short-term goals and actions:
- 41% pay off their credit cards in full each month to avoid
paying interest;
- 37% contribute regularly to an RRSP;
- 25% have sought investment advice from a professional
advisor;
- Just 7% follow the stock market.
On a positive note, more female investors are now
following a budget to manage their spending (55% vs. 50% in 2007).
"While it is encouraging to see more women involved in
budgeting household spending, I would like to see more of them
moving beyond this 'comfort zone' into serious long-term
goal-setting and financial planning," adds Lovett-Reid.
"It is the long-term plan and the consistent actions we
take to achieve it that will propel us towards our most important
life goals."
The national online poll was conducted between
September 18-25, 2008 by TNS Canadian Facts among 1,094 Canadian
women aged 25-69 who have sole or shared responsibility for
household financial planning or investment decisions. It is a
comprehensive annual study of Canadian women's attitudes towards
investing.
About TNS
TNS is one of the world's leading market information groups,
providing market measurement, analysis and insight through its
operating companies in 70 countries. Working with national and
multi-national organizations, we help our clients develop effective
business strategies and enhance relationships with their customers.
In Canada, TNS Canadian Facts provides full-service, primary market
research. Its mission is to become clients' sixth sense of
business(TM) by giving them a deeper understanding of their
customers' behaviour, better anticipation of their actions and
greater insight into what they really want. About TD Bank Financial
Group
The Toronto-Dominion Bank and its subsidiaries are
collectively known as TD Bank Financial Group. TD Bank Financial
Group is the seventh largest bank in North America by branches and
serves approximately 17 million customers in four key businesses
operating in a number of locations in key financial centres around
the globe: Canadian Personal and Commercial Banking, including TD
Canada Trust; Wealth Management, including TD Waterhouse and an
investment in TD Ameritrade; U.S. Personal and Commercial Banking
through TD Banknorth and Commerce Bank (to be known together as TD
Bank); and Wholesale Banking, including TD Securities. TD Bank
Financial Group also ranks among the world's leading on-line
financial services firms, with more than 5.5 million on-line
customers. TD Bank Financial Group had CDN$509 billion in assets as
of July 31, 2008. The Toronto-Dominion Bank trades on the Toronto
and New York Stock Exchanges under the symbol "TD",
as well as on the Tokyo Stock Exchange.
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