Two in three millennials save monthly, yet just one in five put advisors first
Only 22 percent of Canadian millennials name financial advisors as the strongest influence on their financial decisions, trailing the 42 percent who point to their own research and self-education.
The Millennial Money Report, released by Haventree Bank in partnership with Angus Reid, found friends and family placed third at 16 percent, while social media and influencers ranked last at 2 percent.
Haventree, a Schedule 1 Canadian bank, found that 66 percent of respondents are skeptical about using artificial intelligence (AI) for financial decisions or say they never would.
Twenty percent use AI for financial guidance, and 3 percent trust its advice without double-checking it first.
Two-thirds (66 percent) contribute to savings or investments at least monthly, according to the report, including 42 percent who do so every paycheque.
Haventree reported that 69 percent save less than $10,000 a year and 62 percent invest less than $10,000 annually.
Of those surveyed, 28 percent save or invest less than $2,000 a year.
One in 10 (10 percent) cannot put anything aside to save, and 15 percent cannot put any money toward investing.
“Millennials are following sound financial advice. They save regularly, they do their own research, and they rely on registered accounts to build toward their long-term goals,” said Fern Glowinsky, president and CEO of Haventree Bank.
More than half (58 percent) keep most of their long-term savings in a tax-free savings account (TFSA) or registered retirement savings plan (RRSP), the bank found, followed by stocks, exchange-traded funds (ETFs) or mutual funds at 17 percent.
Just 11 percent rely primarily on a savings account, and 7 percent have no long-term savings.
Loyalty to a single institution is weaker.
The report found that 57 percent keep their savings with one primary financial institution, while 43 percent spread them across more than one.
Growing wealth as much as possible, even with some risk, is the most common investment priority at 29 percent, ahead of safety and protection at 20 percent, quick access to funds at 19 percent, simplicity at 17 percent, and predictable returns at 15 percent.
Given a hypothetical $10,000, respondents split almost evenly between the stock market at 33 percent, paying down debt at 32 percent, and a guaranteed return through a guaranteed investment certificate (GIC) or savings account at 29 percent.
Retiring comfortably or reaching financial independence before traditional retirement age is the main reason for saving among 69 percent of respondents, according to the report, and 60 percent describe themselves as saving aggressively or steadily for retirement.
Haventree found that 26 percent expect to be financially ready to retire before 60 and 56 percent expect to retire by 65, while 18 percent do not think they will ever be able to retire.
A lack of disposable income is the biggest barrier to saving more for 55 percent, the bank reported, ahead of debt at 16 percent, limited financial knowledge or confidence at 8 percent, and fear of losing money at 7 percent.
A quarter (25 percent) say they are focused on covering current costs and that long-term planning is not realistic right now.
