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Canadians soldier on, Investors Group polls find

Fundamental commitment to retirement savings and plans not shaken

Winnipeg, MB – November 6, 2008: Despite the market turmoil of recent weeks, new research by Investors Group reveals that concerns about the stock market are no greater worry for Canadians than concerns about taxes and the value of the Canadian dollar.

Two polls conducted by Investors Group in mid-September and late October asked survey respondents to rate concerns about retirement security. The October results reveal greatest apprehension about property and income taxes (39 per cent), currency fluctuations (39 per cent), and poor stock market returns (38 per cent).

A comparison of the two polls indicates concerns about the changing value of the Canadian dollar and stock market volatility grew from September to late October. The former jumped by 12 percentage points while the latter increased by eight percentage points. Inflation and fear of potential job loss were lesser priority concerns at 33 per cent and 23 per cent respectively.

“Retirement security doesn’t depend on one single factor, like stock market ups and downs,” said Debbie Ammeter, Vice-President of Advanced Financial Planning at Investors Group. “The best way to mitigate potential threats is to work with a financial planner to consider all relevant factors, including taxes, a balanced portfolio and other strategies to withstand market fluctuations, when building your retirement savings strategy.”

Canadians remain committed to retirement savings

Stock market volatility hasn’t shaken the fundamental commitment of Canadians to their retirement and savings plans, the survey revealed. Two out of three investors (67 per cent) who already have an RRSP or are planning to start one, intend to contribute the same or more as they did last year.

“Despite market volatility and plans to divert some RRSP funds into Tax Free Savings Accounts, a majority of Canadians still see the appeal of RRSPs as a long-term retirement savings tool,” said Ammeter.

Most Canadians still on track for retirement

When asked in October, nearly a majority of non-retired Canadians say that recent events in the world financial markets have not affected their plans to retire. One in four (28 per cent) say they will now retire later than originally planned. Of all age groups, those between 60 and 64 years of age are more likely to say that they will retire later (44 per cent). Thirty per cent of women, compared with 25 per cent of men say they now plan to retire later.

“Canadians should revisit their financial plans before making any rash decisions about changing their retirement goals,” said Ammeter. “A complete review of your retirement plans with a professional will guide you in making adjustments to your retirement plan, if required, or give you peace of mind that you can still retire when you originally intended.”

Doing the right thing

Based on September’s research, some lifestyle changes in spending behaviour are evident, in response to investment performance or general economic uncertainty. Nearly one-third (28 per cent) of Canadians are spending less on entertainment as a result of recent world financial market events; 32 per cent are spending less on small personal luxuries; and, 34 per cent are spending less on large discretionary purchases.

“A prudent approach is a reasonable one during times like this,” Ammeter noted. “Canadians are making short-term lifestyle adjustments as they stay the course.”

The Harris/Decima data were gathered from September 18^th to September 24^th, 2008, and October 23^rd to October 27^th, 2008 through the Harris/Decima teleVox. September results are based on a sample of 2,100 Canadians and the corresponding margin of error is 2.1 percentage points, 19 times out of 20. October results are based on a sample of 1,040 Canadians and the corresponding margin of error is 3.1 percentage points, 19 times out of 20.

Investors Group, founded in 1926, is a national leader in delivering personalized financial solutions to Canadians through a network of approximately 4,400 Consultants located throughout Canada. In addition to an exclusive family of mutual funds and other investment vehicles, Investors Group offers a wide range of insurance, securities, mortgage and other financial services. Investors Group is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada’s premier financial services companies with $107 billion as of October 31, 2008 in total assets under management.

For more information contact:
Ron Arnst Media Relations (204) 956-3364 ron.arnst@investorsgroup.com	Teresa Pagnutti or Meredith Adolph Environics Communications 416-969-2721 / 416-969-2667 tpagnutti@environicspr.com / madolph@environicspr.com