The current economic climate is reshaping how Canadians save and invest. A recent TD survey found that 65% of Canadians say the high cost of living is affecting their ability to reach financial goals. Rising everyday expenses are prompting many people to prioritize immediate cash needs over longer-term investments, which can leave savings plans and retirement timelines vulnerable to disruption.
According to Pat Giles, vice-president of the Saving and Investing Journey at TD, these pressures are changing behaviour: “Over a third (35%) of Canadians are contributing to a savings account only.” Rather than placing money into tax-advantaged or investment accounts, many are keeping funds in liquid cash to manage bills and short-term uncertainty. That decision provides flexibility, but it also means many Canadians may be missing potential growth from accounts such as tax-free savings accounts (TFSAs), registered retirement savings plans (RRSPs) or first home savings accounts (FHSAs).
A gap in financial literacy
The survey highlights more than short-term cash choices. It also reveals a clear gap in financial confidence: 45% of Canadians report they do not feel confident in their investment knowledge. That uncertainty is reflected in behaviour—only 58% of Canadians invest at least annually, while a third (34%) say they have never invested. Those figures indicate a sizable portion of the population is either cautious, unsure where to begin, or lacks access to straightforward guidance.
Interestingly, younger investors stand out. Giles notes that 68% of Gen Z respondents invest consistently each year—the highest rate among age groups. That suggests many younger Canadians understand the long-term advantages of investing, including how compound growth can work in their favour when they start early. For others, overcoming the knowledge gap is a key step toward meeting long-range objectives such as home ownership, retirement security or building an emergency fund.
Regardless of age or income, having proper guidance can make a measurable difference. TD’s findings underline the value of tailored advice and practical tools to translate intentions into action.
“Whether saving for retirement or a rainy day, don’t wait. The earlier you start investing, the more you can benefit from market growth and compound interest.”
—Pat Giles, vice-president, Saving and Investing Journey, TD
Seeking support
Nearly half of respondents who feel their long-term investments are not set up effectively—48%—say they would feel more confident about reaching financial goals if they received professional help. That finding highlights a common barrier: many Canadians recognize they need guidance but may be unsure how to access it or what type of advisor best suits their situation.
Giles emphasizes practical steps people can take: start with a clear goal, assess risk tolerance, and use tools that match those goals. TD provides a range of resources intended to help Canadians build a personalized plan. Services such as TD Wealth Financial Planning Direct and the TD Advice Hub are designed to guide people through savings and investment decisions. In branch or online, TD Personal Bankers can discuss options, explain the differences between account types, and help build a plan tuned to each person’s timeline and priorities.
Using planning tools—like goal planners and budget builders—can help turn uncertainty into a simple action plan. A TD Personal Banker, for example, can walk through options such as TFSAs for tax-free growth, RRSPs for retirement savings, or an FHSA for those saving toward a first home. These conversations often focus on creating manageable steps, from establishing an emergency buffer to setting up regular contributions toward long-term investments.
Scheduling an appointment with a qualified advisor can be a practical next step for anyone feeling unsure about where to begin. Professional guidance can clarify trade-offs, outline tax considerations, and recommend a balanced approach that keeps short-term needs and long-term goals in view.
Newsletter
Get free MoneySense financial tips, news & advice in your inbox.
More about personal finance:
- How to deal with money and your finances when the economy is stressing you out
- Year-end tax-saving tips for Canadians for 2024
- Renewing your mortgage? A guide for Canadians
- Car loan interest rates: What’s the best Canadians can get?