Most Canadians are cutting back on everyday spending, but plan to stay the course when it comes to saving for retirement, according to a new BMO Financial Group survey.
Nearly two-thirds of Canadians say they will reduce everyday spending because of uncertainty relating to the economic downturn, according to the survey, which Leger Marketing conducted for the Bank of Montreal.
While they're concerned about short-term spending, nearly 70% of survey respondents said they were confident they wouldn't need to take out funds from their RRSP savings to make ends meet.
The survey found that 60% plan to contribute as much to their RRSP this year as they have in the past, although 38% said they won't contribute this year because they need to spend the funds now.
Of those who are investing, more than 40% said they plan to change their investment mix because of the economic climate.
But the survey found that decisions are being made without a financial plan. Nearly 70% of respondents admitted that they don't have a financial plan, and 80% said the current economic downturn is not enough of an incentive to create one.