Key poll findings:
- 45 per cent of Canadians do not have an emergency savings fund
- By demographic, Canadians aged 45 to 64 are the most likely to be prepared for an emergency, with 60 per cent reporting they have emergency savings put aside
- The likelihood of having an emergency savings fund declines among younger Canadians — only 51 per cent of Canadians aged 18 to 44 say their household has emergency savings
"Once you've experienced the financial challenges that come with a leaky roof or an unexpected car repair, the value of having some cash set aside for emergencies becomes clear," says Christina Kramer, Executive Vice President, Retail Distribution and Channel Strategy, CIBC. "Our poll shows an opportunity for more Canadians to start building up an emergency fund, to help get them through an unexpected expense and avoid dipping into long term savings to pay for a short-term problem."
Canadians aged 45 to 64 are more likely to say their household has an emergency savings fund. This could be attributable to life experience — they may have experienced an emergency in the past and have learned to set money aside for a rainy day.
"It's important to plan for your long term financial goals, but you also need to be prepared for the unexpected by having some funds set aside for emergencies," notes Ms. Kramer. "For younger Canadians who are just starting out financially, building an emergency fund should be a priority, even if it's only a small amount that you build on over time."