An increasing number of Canadian women are defining themselves as financially successful, a recent survey by TD Waterhouse has found.
The ninth annual Female Investor Poll, which surveyed nearly 1,500 women between the ages of 45 and 64, found that 62% of respondents identified themselves as financially successful, up from 58% in 2008.
The survey also found that the economic downturn has had little or no impact on the way women think and act when it comes to investing. Nearly three-quarters of respondents said they made no changes in the past year to the level of risk they take when investing, and 7% of respondents said they are taking advantage of the drop in stock prices by investing more in stocks and mutual funds.
Another 21% said they have reduced their risk by switching to lower risk investments, such as GICs.
Half of the women polled admitted that they’ve changed their behaviour in other ways — particularly in terms of their spending habits. Of those women who said they made a change, 48% postponed major purchases, 46% charged less on credit cards in order to avoid interest charges, and 40% reduced or stopped their spending on non-essential purchases.
Despite being more confident about their finances, more than half of the women surveyed admitted to being “mildly concerned” or “worried about their investments. These concerns range from feeling they are missing opportunities due to a lack of knowledge, to worrying they have not done enough to retire comfortably.
Respondents were least confident in achieving their goal of a comfortable retirement, with only 20% saying they are “very confident” they can make this happen.
“Women today have many priorities — their family, friends, health, giving back to the community,” said Patricia Lovett-Reid, senior vice-president at TD Waterhouse. “Finances are just another aspect of our lives that we have to balance, so it’s understandable that many of us feel unsure about our futures.”
While 97% of those surveyed say that assuring a comfortable standard of living during retirement is a top financial goal, only 30% have a formal financial plan and 27% of non-retired women aged 45-64 do not know how much money they need to accumulate before they retire in order to meet their retirement goals.
Lovett-Reid said it’s important for women to have a financial plan in place, specific to the kind of life they want to lead in retirement.
“Only after we’ve determined our lifestyle goals, can we put a plan in place to make those dreams a reality. This is key to empowering ourselves and building confidence in our financial future,” she said.
The survey found that the top financial goals among women are: comfortably managing day-to-day living expenses; assuring a comfortable standard of living during retirement; saving for emergencies; and paying off credit card balances and loans.
IE
Female investors feeling confident despite economic downturn: survey
Many women are failing to plan for retirement
- By: Megan Harman
- October 13, 2009 October 31, 2019
- 09:40