Immigrants arrive in Canada with an average of $47,000 in savings to help them settle in their new country, according to a survey conducted for the wealth management arm of Toronto-based Bank of Montreal (BMO).
After taking care of initial expenses that are associated with moving to a new country, immigrants are left with an average of $20,000 and use the rest of their money to save for things like retirement (53%), children’s education (49%), a large purchase like a home or a car (44%) or a trip (36%).
Two-thirds of the surveyed immigrants also reveal that they send a portion of their money back home to friends or family.
“It can be incredibly stressful, financially and otherwise, to pick up, move to another country and begin the process of creating a new life for yourself. It’s great to see that new Canadians do have a bit of a nest egg remaining,” says Julie Barker-Merz, president, BMO InvestorLine.
It is critical that those who are new to the country ensure their money continues to work for them by acquainting themselves with the basics of saving and investing in their new environment. This is where online research and the help of a financial professional can help, she adds.
The survey also found that approximately one-fifth of immigrants come to Canada with an older relative and 37% arrive in the country with at least one child.
There are multiple reasons why people choose to come to this country. Slightly less than half (46%) come for greater safety. Improved education is another reason for many, with 36% choosing this option and 38% coming for a better job. One-third of respondents want access to better government programs.
Two-thirds (67%) of immigrants feel their standard of living has improved since arriving, with 27% saying it has improved greatly.
This study is the first in a series called “Making the financial transition,” which examines a variety of financial issues related to new Canadians. Pollara Strategic Insights conducted the survey between Feb. 4 and 19, using an online sample of 507 people who have immigrated to Canada in the past 10 years.