Canadian Securities Administrators 2017 Investor Index:

The Manitoba Numbers

One-in-four Manitobans has no savings, but comparable to national average

Winnipeg – A new survey conducted for the Canadian Securities Administrators (CSA), and the Manitoba Securities Commission (MSC) shows 28 per cent of Manitobans 18+ have no savings and no investments for the future.

However, that number is comparable to the national figure of 31 per cent.

The 2017 CSA Investor Index and the Manitoba Custom Report look at investor behaviour, measuring financial knowledge, how people are saving money, how people are getting investment information, the pervasiveness of fraud, and more.

Of the Manitobans who do have savings, 53 per cent have savings in an RRSP, RRIF or pension plan; 41 per cent have a TFSA, and 29 per cent have money saved outside of those four products. Findings also show that for those who do invest, nearly half of Manitobans have less than $50,000 saved.

“We all encourage young people to start saving early for the future, but not all 20-year-olds are going to be able to save significantly while contending with school or part-time work” says Don Murray, MSC Chair and CAO, and CSA Co-Chair. “What really concerns me are the numbers indicating Manitobans in their 30s, 40s, and 50s without a financial plan or adequate savings for retirement.”

Compounding the issue, Canadians don’t seem to understand what a reasonable rate or return is. Just seven per cent of Manitobans surveyed had a reasonable expectation of a market rate of return, or nine per cent nationally—a lack of knowledge that opens the door to fraud attempts.

“Over-estimating potential return on investment can leave a person vulnerable to empty promises from a fraudster,” says Ainsley Cunningham, Manager of Education and Communications at MSC. “If a person thinks a 20 or 30 per cent return on investment in 30 days sounds reasonable, they’re going to be much more susceptible to being scammed.

One-in-five Manitobans has been targeted by fraud – 20 per cent compared to 18 per cent nationally. Five per cent say they’ve actually invested in what turned out to be a fraud – up slightly from three per cent in 2012, and higher than the national average of four per cent.

Just over a quarter of investors take the time to check their adviser’s registration and background – 27 per cent in Manitoba and 29 per cent nationally.