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BMO Financial Group

June 12, 2015 06:00 ET

Inaugural BMO Wealth Management Index Finds 79 Per Cent of PEI Residents Have a Financial Strategy

- Index ranks residents of each province on who is most successful at managing their wealth according to a variety of criteria

- PEI places eighth among the provinces

- PEI residents scored well in having a financial strategy and having a life insurance policy in place; opportunities exist for them to improve by working with a professional to ensure effectiveness of their financial plan and prioritizing saving to sustain their lifestyle

CHARLOTTETOWN, PRINCE EDWARD ISLAND--(Marketwired - June 12, 2015) - BMO Wealth Management today launched a first-of-its-kind national Wealth Index, which provides a snapshot of Canadians' financial situation and measures their ability to manage their wealth.

The inaugural BMO Wealth Management Index ranks residents of each province, out of a score of 100, on which residents are most successful in managing their wealth. This is determined by looking at a variety of criteria, including: having, reviewing and maintaining a financial plan; household debts and assets; retirement savings; having insurance in place; estate planning components; rainy day savings; and the sustainability of their current financial situation. The Index is unique among financial measures because it considers more than just "balance sheets" (i.e. how much money Canadians have).

With a score of 66.7, PEI placed eight out of the 10 provinces polled; the national average score was 69.3. Prince Edward Islanders scored highest in the following areas:

  • Reviewing their financial plan on a regular basis (88 per cent)
  • Having a financial strategy in place (79 per cent)
  • Having a life insurance policy (73 per cent)

The categories in which they scored lowest included:

  • Ensuring the effectiveness of their financial plan (74 per cent have not used a professional to draft their plan)
  • Prioritizing their retirement savings (65 per cent do not consider this a top priority)
  • Having disability insurance or a will (only 46 per cent and 45 per cent, respectively)
  • Having a high level of debt (average of $108,711, which is nearly $10,000 above the national average) and emergency savings (average of $16,500, which is less than half of the national average).

"It's encouraging to see that many PEI residents have a financial strategy and appreciate the importance of having life insurance in place in order to protect loved ones," said Rick Thomson, Vice President and Market Leader, Atlantic Canada, BMO Private Banking, a part of BMO Wealth Management. "BMO Wealth Management launched this index to discover how PEI residents fared in wealth planning and reveal opportunities for financial growth. It's important for residents to speak with a financial professional who can help them strategically manage their money, organize their finances and plan for the future."

Prince Edward Islanders Confident About Financial Preparedness

In addition to questions to determine the Index rankings, PEI residents were asked about how prepared they are to deal with significant life changes, such as getting married, the birth of a child, job loss, retirement etc.:

  • Sixty-four per cent are confident that they would be prepared financially
  • Nineteen per cent are not very confident that they would be prepared financially
  • Eight per cent are not at all confident that they would be prepared financially

"It's encouraging that almost two thirds of PEI residents believe they can take on a major change successfully," said Betsey Chung, Chief Marketing Officer, Canadian Banking & Wealth Management, BMO Financial Group. "Life events and market changes are often catalysts for people to reconsider their approach to wealth management. We're here to help clients turn these changes into opportunities - whether it's a fresh start, a new endeavour or a chance to give back."

BMO Wealth Management recently launched a multi-faceted ad campaign that is appearing across all customer experience platforms and webpages. The campaign tells the stories of clients going through significant life changes - newly single, aging parents, kids returning after university and changing market conditions, to name a few - and showcases how BMO Wealth Management can help clients turn those changes into opportunities for greater financial success and peace of mind.

BMO Wealth Management Index - Provincial Breakdown

Province Index Score
National 69.3
Saskatchewan 72.9
Quebec 71.1
Alberta 70.6
Newfoundland & Labrador 70.4
Nova Scotia 70.0
Ontario 69.2
Manitoba 68.4
PEI 66.7
B.C. 66.3
New Brunswick 58.9

BMO Wealth Management Index - Key National Findings:

  • Canadians scored well on having a financial strategy (81 per cent) and ensuring their loved ones were financially secure by having a life insurance policy (66 per cent)
  • Opportunities exist for them to improve by working with a professional to ensure the effectiveness of their financial plan (66 per cent have not used a professional) and prioritizing saving for retirement (65 per cent do not do so)
  • When Canadians were asked about how they would fare financially in the event of a major life event (such as getting married, the birth of a child, loss of a job, etc.), 62 per cent are confident that they would be prepared financially, 21 per cent are not very confident and 10 per cent are not at all confident

Survey results cited in this report are from online interviews with a random sample of 1,403 Canadians, 18 years of age and over, conducted between April 10th and 13th, 2015.

As a guideline, a probability sample of this size would yield results accurate to ± 2.6%, 19 times out of 20. Results have been weighted using the latest census data to be representative of Canadians as a whole.

For more information on BMO Wealth Management, please visit: http://www.bmo.com/main/wealth-management.

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About BMO Financial Group

Established in 1817, BMO Financial Group is a highly diversified financial services provider based in North America. With total assets of approximately $633 billion as of April 30, 2015, and more than 47,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, Wealth Management and BMO Capital Markets.

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