While British Columbians are confident about their personal finances, more have become increasingly pessimistic about the economy in 2009, according to a new survey by Central 1 Credit Union.
More than 60% of British Columbians surveyed said they were confident about their own personal finances. However, half of the survey's respondents said they believed the economy will continue to worsen in 2009. That's up from 43% of respondents surveyed in September 2008.
More than 70% of B.C. residents surveyed are concerned about maintaining their standard of living and 64% said the slowing economy is already influencing their financial decisions.
The survey also found that many people are deciding to reduce spending, pay down debt and increase their savings.
About half of the B.C. residents surveyed said they will make the same level of contributions to their RRSPs as they did the year before. Half said the economy had not changed their level of risk in their RRSPs, but a quarter said they would seek lower-risk investments.
About 40% of those surveyed said they would be opening the new tax-free savings account (TFSA) this year.
A recent Coast Capital Savings survey found that British Columbians were more likely to open a TFSA than other Canadians. Overall about 50% of Canadians surveyed said they were planning to put more money into a TFSA this year because of current economic conditions.
A high interest savings account is the most popular financial product for a TFSA, according to the survey, with publicly traded securities being the least popular investment for a TFSA.