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Canadians Facing Barriers When it Comes to Investing for First Time

Lack of money, risk tolerance, and knowledge preventing Canadians from investing their money

TORONTO, ON - September 19, 2017

A recent survey* by Tangerine Investments found that over a third of Canadians surveyed (36 per cent) do not have an investment account, and only four per cent of non-investors have ever seriously considered opening one. When asked to select the reasons why they don’t invest, 70 per cent of non-investors said they don’t have enough money, 25 per cent said they’re worried about the risk of losing money, and 20 per cent said they don’t know enough about investing their money, and it’s too complex.**

Despite these findings, 67 per cent of non-investors agree that investing should be a priority, even if they’re carrying debt. They also identified reasons why they would want to invest: 50 per cent selected retirement; 36 per cent said to grow their money faster; and 29 per cent said to save for a big purchase like a child’s education, a vacation or a house.

“Unfortunately there’s a misconception out there that you need to be an expert with a lot of money to start investing, and this simply isn’t true,” said David McGann, Director of Tangerine Investments. “For example, at Tangerine we require no minimum amount to invest in one of our low-cost funds and getting started is as simple as answering a questionnaire online. And if you need help, we have a team of qualified advisors on hand to take your call.”

Up-and-Coming Adults (aged 26- 36) vs. Established Adults (aged 40-54)

Interestingly, Up-and-Coming Adults (individuals aged 26-36) were more likely to have considered or seriously considered opening an investment account (33 per cent) compared to almost a quarter (24 per cent) of Established Adults (individuals aged 40-54).

Further findings from the survey suggest that Established Adults may be facing more barriers when compared to Up-and-Coming Adults when it comes to investing. For example, they were more likely to say they don’t have enough money to start (75 per cent vs. 62 per cent).

Established Adults were also less willing to start investing based on the provided statements below:

Statements (could select multiple) Up and Coming Adults (26- 36) Established Adults (40-54)
I would be willing to start investing if I didn't have to meet with anyone face-to-face 34 per cent agree 29 per cent agree
I would be willing to start investing if I knew I wasn't going to incur high fees 32 per cent agree 23 per cent agree
I would be willing to start investing if I had a trusted option with proven performance 32 per cent agree 21 per cent agree
I would be willing to start investing if I had a simple option that was automatic and made investing seem less intimidating/scary 13 per cent agree 11 per cent agree
None of these options 31 per cent 44 per cent

An Early Start
The survey also asked questions to those already investing and the findings were consistent; 72 per cent of Canadians said they started before the age of 34, with a greater number of Up and Coming Adults having opened an investment account compared to Established Adults (64 per cent vs. 55 per cent).

When asked why they started investing, 64 per cent of Canadians said to save for retirement, 56 per cent selected financial security, 45 per cent to grow their money faster, and 23 per cent said to save for a big purchase like a child’s education or vacation.

*Survey Methodology
From August 30 to 31, 2017 an online survey was conducted among 1,510 randomly selected Canadian adults who are Angus Reid Forum panelists. The margin of error—which measures sampling variability—is +/- 2.5%, 19 times out of 20. Discrepancies in or between totals are due to rounding.

**Survey respondents could select multiple options for not investing. The below chart represents the full findings.

Statements (could select multiple) Total
I don't have enough money to start investing it 70 per cent
I'm worried about the risk of losing money 25 per cent
I don't know enough about investing my money; it's too complex 20 per cent
There are too many options out there; I don't know where to start 16 per cent
I don't trust anyone else with my money 13 per cent
I don't have enough time to deal with investing 11 per cent
I'm too intimidated to approach investing 7 per cent
Something else 9 per cent

About Tangerine Investment Funds

Tangerine Investment Funds are managed by Tangerine Investment Management Inc. and are available only by opening an Investment Fund Account with Tangerine Investment Funds Limited (formerly known as ING DIRECT Funds Limited). Both firms are wholly-owned subsidiaries of Tangerine Bank. With close to $3 billion in Assets Under Management, Tangerine Investment Funds Limited is the principal distributor of the Tangerine Investment Funds.

About Tangerine
Tangerine is a direct bank that delivers simplified everyday banking to Canadians. With over 2 million Clients and close to $38 billion in total assets, we are Canada's leading direct bank. Tangerine offers banking that is flexible and accessible, products and services that are innovative, fair fees, and award-winning Client service. From no-fee daily Chequing and high-interest Savings Accounts, Credit Card, GICs, RSPs, TFSAs, Mortgages and Investment Funds through its subsidiary, Tangerine Investment Funds Ltd., Tangerine has the everyday banking products Canadians need. With over 1,000 employees in Canada, our presence extends beyond our website and Mobile Banking app to our Café locations, Pop-Up locations, Kiosks and 24/7 Contact Centres. Tangerine was launched as ING DIRECT Canada in 1997. In 2012 it was acquired by Scotiabank, and operates independently as a wholly-owned subsidiary.

For more information, visit tangerine.ca