Canadian investors report they are anxious about finances, with 24% of investors saying they have lost confidence in their ability to manage their own investments over the past year, according to a survey released Wednesday by TD Waterhouse.

“With 2008 being one of the most stressful trading years in history, we know that investors have more financial worries than ever,” says Patricia Lovett-Reid, senior vp, TD Waterhouse. “People shouldn’t let market volatility dictate their long-term financial planning and they should speak with an advisor who can help keep their retirement plan on track.”

When it comes to how Canadians are feeling, the 8th annual TD Waterhouse RSP Poll showed that approximately one half admit to having enough anxiety about their finances to keep them up at night (at least occasionally) and nearly 90% of investors acknowledge having at least some financial worries.

Topping the list of financial worries is their declining value of investments (22%) followed by paying bills and managing day-to-day expenses (19%), and saving money for retirement (14%).

Women (54%) are more frequently kept up at night by financial worries than men (41%). Women are also more likely to worry about meeting and managing day-to-day expenses than men (24% versus 14%). Men, on the other hand, are slightly more likely than women to worry about the declining value of their investments (23% versus 21%).

Forty per cent of Canadians aged 65-69 are kept up at night by financial worries, compared to 51% of people aged 35-49. People 50 years of age and older are more concerned with the declining value of their investments (34%) than those aged 18-49 (11%).

The survey also found that the recent financial downturn has forced 49% of Canadian investors to alter their spending and investing habits. The most cited spending and investment behaviour changes include postponing major purchases such as a house, car or furniture (52%), charging less on credit (45%) and still making non-essential purchases but spending less on them (39%). Nearly an equal number of Canadians (38%) are completely cutting out spending on non-essential purchases.

Women have changed their spending behaviour more than men. Nearly 50% of women have completely cut out spending on non-essential purchases, whereas only 29% of men have made the same decision. Older investors are more likely to have switched to less risky investments like GICs (36% of 65-69 year olds versus 16% of 35-49 year olds).

From Dec. 11 to 18, 2008, TNS Canadian Facts conducted an online survey among a randomly selected, representative sample of 1,006 Canadian investors between the ages of 18 and 69.

IE