Curious to know how Canadians invested their money this RRSP season? We set out to find out exactly how people chose to save for their financial future using RRSPs and which institutions were best suited for their needs. Read about our recent survey findings where we uncover the details about how Canadians chose to invest for their retirement and how robo-advisors are among the top choice for opening an RRSP account this year.
With just days left before the March 1st deadline, we recently conducted a survey of more than 650 Canadians this RRSP season to understand the ways our country invested their money to support their financial future this year.
Canadians Choosing Robo More Than Ever Before This RRSP Season
Our research found that almost one-third (30%) of Canadians who’ve opened an RRSP account during the 2018 RRSP season have reportedly done so by choosing to invest with a robo-advisor.
What was once considered to be a millennial tech trend has now turned into a trusted investment option for Canadian investors.
In fact, the Globe and Mail reported that the average age of a client using a robo-advisor in 2017 was 42. With it’s growing popularity across the country, robo-advisors are becoming one of the top selected options to help Canadians grow their money.
Where Are Canadians Investing for Retirement?
Our research shows that robo-advisors are being considered over traditional investment firms like mutual fund management companies. And by being second only to the Big 6 Banks, digital wealth management is showing an upward trend in popularity as those looking to invest are gravitating towards options that can offer them straightforward and transparent fees.
We also found that of the respondents that considered both a Big 6 Bank and robo-advisor for opening or funding an RRSP account were twice as likely to commit to a robo-advisor platform when opening or funding an account.
More Than 50% of Canadians Consider “Low Fees” As The Biggest Driver
Canadians are taking a closer look at digital wealth management solutions for a variety of reasons. In the same survey, “low fees” was the most common consideration in choosing the solution for their retirement savings account this year. The results show that more than half (51%) of respondents said low fees was the biggest consideration to drive them towards one investment solution versus another. Another top consideration was increased “online and/or mobile access” at 29%.
Digital wealth management has clearly hit on a latent need for Canadians, as related to their retirement savings goals and aspirations. Having leaped into second place for new account openings in less than five years clearly illustrates the need for low fees and a unified digital experience to support life goals.