Canadian Women Assuming Greater Financial Power As RRSP And Company Pension Enrolment Grows - Survey reveals women seen as financially knowledgeable as men.

TORONTO--(BUSINESS WIRE)--July 8, 1998--Investors Group Inc. (ME:IGI.) (TSE:IGI.) Canadian women are taking greater control of their financial destinies through increased enrolment in company pensions, RRSPs, and the purchasing of financial products, this year's Investors Group Inc. survey of Canadian financial attitudes reveals.

The survey, undertaken for the financial services organization by Gallup Canada, found that Canadian women and men are taking responsibility for their long-term financial well-being, and that among couples women are assuming more powerful roles in financial decision-making.

Canadians today view women and men as being equal partners in financial planning; almost 78 percent of couples say the female partner has an equal role in making financial decisions. When asked if women are as knowledgeable as men when it comes to money and investing, 88 percent of women and 86 percent of men agreed.

The survey, which involved a telephone poll of 1,405 adults between May 22 and 31, also disclosed that nearly 70 percent of women expect to be financially self-sufficient when they retire. One in three women has her own company pension plan through her employer, in addition to the Canada or Quebec Pension Plan.

The survey results clearly reveal that women are solidifying their presence in the financial marketplace, observed Sandra Metraux, Senior Vice-President, Marketing for Investors Group, at a news conference today in Toronto.

"The financial services industry has long appreciated that women are key influencers in purchasing decisions and, as inheritors of wealth, they also have the responsibility for managing finances in their later years. This survey gives us added insight into their increasing influence in financial decision-making," Ms. Metraux said.

Investing by Canadian women is on the rise. More than half of all women surveyed - 55.3 percent - said they have an RRSP or RRIF, up from just 38 percent in our 1992 survey. Overall RRSP participation remained steady at 57.8 percent, while 60.3 percent of men reported having an RRSP. Participation rose to more than 70 percent among both women and men in the 40-to-64 age group.

Women have accumulated about the same amount of money as men in their RRSPs, the survey found, except in the over-$100,000 category. More than 14 percent of men, compared to just under four per cent of women, have invested at this level. Only one in 10 Canadians borrowed to make an RRSP investment, although slightly more women (10.5 percent) than men (9.6 percent) said they did so.

The survey also disclosed that women are significant purchasers of financial products. More than 37 percent own mutual funds (up from 16 percent in 1991), nearly one-third have invested in GICs, and almost one in four (23.2 percent) owns stocks or bonds.

Women plan for financial independence. Seventy per cent of Canadian women said they expect to be financially self-sufficient when they retire, a number outmatched only slightly by men (80.2 percent). Fewer than 11 percent of women - and 11.7 percent of men - expect to rely solely on government pensions when retired. One in three women has her own company pension plan through her employer, in addition to the Canada or Quebec Pension Plan.

Both men and women cited their partner as their primary source of advice when making a major financial decision - 44.6 percent for women and 37.1 percent for men.

Both women and men said they rely more heavily on a friend or other family member than they do on a financial institution.

When asked about motivation to save and invest, only one in four said they were building an estate to pass on to beneficiaries. Nearly 80 percent of respondents said investing gives them a sense of personal accomplishment, compared to the one in 10 who told us they invest because they want others to see them as successful. More than half, or 54.6 percent, admit to a fear of not having enough money in old age.

The federal government's efforts to restore confidence in government pensions appear to have had some impact. Some 67 percent of survey respondents expect to receive either a Seniors Benefit or Canada/Quebec pension when they retire, compared to only 44 percent a year ago.

"We have found that women investors on the whole are very thorough and deeply committed to their investment programs," Ms. Metraux concluded. "Although the participation rate of women in the purchase of financial products is still somewhat below that of men, the level of financial involvement - as indicated by such factors as access to financial planning and the confidence of partners and spouses - is as high as that of Canadian men. I think we can look forward to a further narrowing of the gap in the future."

Regional findings of the 1998 Investors Group/Gallup Canada survey:

BRITISH COLUMBIA

- Women in British Columbia are leading the way in RRSP investment, with 72 percent saying they have plans, compared to the national female average of just over 55 percent.

- Women in B.C. are the most likely to have contributed the maximum allowed to their RRSP last taxation year (45.8 percent), versus 31.9 percent of all Canadian women. They were also most likely to borrow to make their contribution (19.2 percent, more than double the average for women in Canada).

- Women in B.C. also led the nation in ownership of several other non-registered investment product classes. Forty-four per cent own GICs/term deposits, compared to 32.8 percent of women overall and 30.7 percent own Canada Savings Bonds or T-bills, compared to 25.9 percent of women nationally.

PRAIRIES

- Close to three-quarters of Prairie women say they intend to be financially self-sufficient, compared to the national female average of 70 percent. RRSP participation among women there - at 69 percent - trails only B.C. women, and far exceeds that of women overall (55.3 percent).

- More women in the Prairies - 36.4 percent - have their own pension distinct from that of their spouse or partner, than in any other region. More than 45 percent of women there have consulted with a financial planner in preparing for their retirement - the highest among all regions - compared to 31.7 percent nationally.

-Prairie women are the largest purchasers of mutual funds in Canada, with 47.4 percent reporting they own one. Women in the Prairies have the second-highest participation in company stocks and bonds, at almost 29 percent. Almost forty per cent own GICs and Term deposits, the second-largest number in the country.

ONTARIO

- Women in Ontario lead the way in ownership of investment products. They have the highest participation in company stocks and bonds, at almost 30 percent, compared to 23.2 percent of Canadian women overall. Ontario women are the second-largest purchasers of mutual funds in Canada (after the Prairies), with close to 47 percent owning these.

-One in four women owns Canada Savings Bonds or T-bills, the second-largest ratio in the country. More Ontario women than in any other region - 82.4 percent - have savings accounts.

QUEBEC

- Of the Quebec women who plan on working as long as possible, 55.4 percent will do so because they say they enjoy working - compared to 39.2 percent for Canadian women.

- More Quebecers than any other Canadians feel that the government pensions they will receive when they retire will be enough to live on, 13.5 percent compared to 8.5 percent for Canada and only 1.6 percent in British Columbia.

- As a motivation for saving, fewer Quebecers are afraid of not having enough money in old age (44.1 percent compared to 54.6 percent for Canada) while more of them are saving to make a major purchase (40.9 percent compared to 31.9 percent for Canada).

- Close to 21 percent of Quebecers say their personal financial situation is better today than it was a year ago, compared to only 14 percent who thought so in 1997 -- the most significant improvement in Canada .

- More than 67 percent of Quebec women expect to be financially self-sufficient when they retire, but only 47.4 percent report having their own RRSPs. The value of the RRSPs they hold is also less than that of other Canadian women.

ATLANTIC REGION

- Residents of Atlantic Canada - more so than in any other region - view women and men as being equal partners in financial planning.

- Almost 84 percent of couples in the Atlantic regions see the female partner as having an equal role in financial decision-making, compared to the national average of just over 77 per cent. Close to 14 percent of Atlantic women report they are the sole decision-maker, more than double the average for all other Canadian women.

- When asked if women are as knowledgeable as men when it comes to money and investing, 96.7 percent of Atlantic Canadians agreed; among all Canadians, just 88 percent of women and 86 percent of men felt the same.

Investors Group is a national leader in providing personal financial planning services to almost one million Canadians. In addition to a unique family of mutual funds and other investment vehicles, Investors Group offers a wide range of mortgage and insurance options. Investors Group has over 3,600 Representatives in 100 Financial Planning Centres across Canada and manages assets of $38 billion.

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