Investors Group Inc. - B.C. Women Lead Country In RRSP Participation.

TORONTO--(BUSINESS WIRE)--July 8, 1998--(TSE:IGI) (ME:IGI) (WINNIPEG STOCK EXCHANGE:IGI) Women in British Columbia are leading the way in planning for financial security in retirement, with more than 72 percent saying they have invested in RRSPs, compared to the national female average of just over 55 percent.

According to this year's Investors Group Inc. survey of Canadian financial attitudes, 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). More than 62 percent say they plan to invest in an RRSP this year.

Women in B.C. are consulting financial planners in record numbers; 45 per cent say they receive financial advice from a planner, compared to the 31.7 percent nationally who do so, and close to 30 percent say they have a writtenfinancial plan.

The Gallup Canada survey, undertaken for Investors Group, found that Canadian women are assuming greater control of their financial destinies through increased enrolment in company pensions, RRSPs, and purchase of financial products. Nearly 70 percent of women say they expect to be financially self-sufficient when they retire.

Canadians today view women and men as being equal partners in financial planning, almost 78 percent of couples saying 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 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 in Toronto today.

"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 women is on the rise. More than half of all women surveyed -- 55.3 percent -- said they have an RRSP, 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.

The survey showed that women have accumulated about the same amount of money as men in their RRSPs, 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, carried out through a telephone poll of 1,405 adults between May 22 and 31, 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 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 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.

Ms. Metraux said the federal government's efforts to restore confidence in government pensions appear to have had some impact. She noted that 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."

Other B.C. region findings of the 1998 Investors Group/Gallup survey:

- All women in B.C. who were surveyed said the Seniors Benefit and/or Canada Pension Plan would not be enough to live on.

- Women in B.C. led in ownership of GICs/term deposits (44 percent, compared to 32.8 percent overall) and in Canada Savings Bonds or T-bills (30.7 percent, compared to 25.9 percent).

Thirty-two per cent of women in B.C. list the news media and/or books as a primary source of advice when making a financial decision - a margin of almost two to one over other Canadian women.

- Retired persons in B.C. were most likely to say their government pensions were not enough to live on and must be supplemented (18 percent, versus 28 percent nationally).

- Almost 30 percent of people in B.C. have a written financial plan, compared to the national figure of 26 percent.

- RRSP participation in the province exceeds the national average, with two-thirds reporting they have a plan. B.C. residents have also invested the most amount of money in their plans: 16.8 percent say they have accumulated between $50,000 and $100,000 and 14.4 percent of planholders have amassed more than $100,000.

- Of those in B.C. who contributed to their RRSP last taxation year, almost half invested the maximum allowed amount (compared to only 35 percent nationally who did so).

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.

        CONTACT:  Investors Group Inc.
                   Cindy Bennett, 204/956-8559
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                   Sarah Hobbs, 416/968-7311
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