Only one in 10 Canadians plan to Investment A new survey from CIBC found that their tax refunds this year would be prioritized over other financial demands.
Most Canadians are preferring to keep the money in cash (39 per cent) or spend it on essentials (29 per cent). The survey released on Friday found that some people are planning to repay the loan (24 percent) or use it for discretionary expenses (12 percent).
Investments were the least chosen option to handle the 12 per cent tax refund this year.
Luka Marjanovic, managing director and head of CIBC Investor’s Edge, says more Canadians should consider investing their tax refund this year.
“Money is in greater demand these days, but Canadians getting a lump sum this spring should consider the opportunity to put those funds to work for them as part of a broader investment plan – especially this Given that, higher inflation means parked cash is losing value more quickly,” Marjanovic said in a press release on Friday.
“Although many Canadians are planning to hold on to their refunds as cash, this may not be a good long-term strategy.”
Rising cost of living hits savings, investments
CIBC’s data on tax refund spending plans is similar to last year’s findings, as Canadians continue to feel the higher financial burden. the cost of living and ongoing economic uncertainty.
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Statistics Canada reported 2.9 per cent. inflation Rate in March. Although the overall rate has declined from a high of 8.1 per cent in the summer of 2022, the Bank of Canada’s policy rate remains high, forcing Canadians to face higher borrowing and housing costs.
Another Ipsos poll released Friday for Global News showed that the cost of living crisis is becoming more desperate. Four in five Canadians (80 per cent) think owning a home is only for the richThe survey found.
With a larger portion of the monthly budget going towards living costs, the survey also found that some Canadians have less to put into savings.
Twenty-one percent of respondents said they are holding off on retirement savings as life becomes more expensive, up six percentage points from March 2023.
Some 29 percent said they have dipped into their personal savings to meet expenses, while 15 percent have used money set aside for retirement.
The findings of both surveys came Following the release of the 2024 federal budget last weekA promise to boost affordability for Canadians.
The Ipsos poll was conducted between April 3 and 4 on behalf of CIBC Investors Edge. 1,001 Canadians aged 18 and older were interviewed.
The release said the accuracy of online voting is measured using credibility intervals. In this case, the findings are accurate to within ±3.8 percentage points, or 19 out of 20 times, of all Canadians aged 18 and older who were surveyed.
– With files from Global News’ Craig Lord
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