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Client & Marketing ResearchUNDERSTAND I ANTICIPATE I ENABLE I ACCELERATE

ATB Investor ServicesAlberta Investor BeatWave 4 – April 2016

To inform business strategy and showcase ATBIS’ deep understanding of Albertans.

1

2

Understand Albertans’ mindset around saving and investing including their intent to save and/or invest based on their confidence in various social, economic and political factors.

Purpose

2

Methodology

3

Field DatesWave 4: April 11 – 18, 2016

Wave 3: January 4 – 13, 2016 Wave 2: October 2 - 19, 2015

Wave 1: June 29 – July 13, 2015

In this report “Albertans” = General Population

Online Albertans Aged 18+

Online (Ipsos Panel)1,007 completes in Wave 4

Qualifying ParticipantsAges 18+

Sample collected and weighted to be representative of Albertans by

age, gender and region

Note - Changes in W4:• A new survey software program was used which may impact wave over wave tracking results.

• Footnotes on slide will indicate where changes to tracking questions were made, if any.

Detailed Findings: Investor Beat Tracking, Financial Goals Progress and Saving/Investment Product Portfolio

• Attitudes towards saving/investing stayed the same as the previous wave, with most Albertans feeling neutral (53%). Among those who think it is a bad time, significantly more mentioned having no extra money to invest (26% in W4 vs. 16% in W3).

• The declining perceptions on economic factors over the past 3 waves have turned positive this wave. Significantly lower proportions of Albertans in Wave 4 are viewing issues such the economy, Canadian dollar, oil prices, gas prices, and the stock market to be much worse than 6 months ago.

• Similar to the past three waves, eight-in-ten Albertans anticipate that the climate to save/invest will remain the same 3-6 months from now. Of note, there is a lift in those who believe it is going to get much better in the short term (15% in W4 vs. 11% in W3).

Saving/InvestmentIntentions of Albertans

Albertans Progress for Personal Financial Goals

Saving/Investment Portfolio Mix

• Saving for retirement remains the top financial goal for Albertans and has jumped up significantly versus the previous wave (51% in W4 vs. 46% in W3). In addition, significantly fewer Albertans feel behind on this goal this wave.

• The rest of the top 10 financial goals have remained stable wave over wave and include: paying down debt, managing day-to-day finances, short-term savings (e.g. children’s education, vacation) and reduced spending round out the top 10 financial goals, and has remained stable throughout the 4 waves.

• There is a significant drop in the number of Albertans who indicate having mutual funds/stocks/bonds this wave. However, the diversity of the savings/investment portfolio remained stable, with cash and mutual funds/stocks/bonds making up the bulk of a financial portfolio.

• NEW Q: Among those who evaluated the new financial product list with this bundle broken out, balanced mutual funds and stocks are invested in more than bonds.

• While significantly less Albertans indicated they had decrease in their savings/investments return this wave, a larger number of Albertans are indicating “don’t know” on the performance of their savings/investments.

4

Detailed Findings:Impact of Oil Price Drops, Financial Planning Sources and Attitudes Towards Financial Planning

• Asking friends/family members or financial advisors are the main sources Albertans have used for financial advice, followed by the Internet.

• At least four-in-ten Albertans are relying on these sources for financial advice more in the P12M versus the previous years.

• Three-in-ten Albertans currently use the services of a financial advisor and started working with one due to having a more complex financial situation or having one recommended to them by the bank or family and friends. Among those that don’t work with one, this is primarily due to not having enough financial assets.

• Close to half of Albertans claim to have a financial plan in place, with retirement and investment details as key areas included in this plan.

Financial Advice Sources & Financial Plans

Attitudes on Financial Planning and Receiving Financial Advice Impact of Drop in Oil Prices

• One-quarter of Albertans agree with the sentiment that they worry on getting through the difficult economic time, yet only one-in-five agree that they have a plan in place to help with this.

• One-quarter of Albertans express disagreement on being happy with their current financial situation, which likely can be associated with a large chunk (39%) not feeling like they have saved enough for retirement.

• Only two-in-ten Albertans agree that they currently need financial advice. While Albertans are not quite interested in receiving advice, it is not because of perceiving financial advice to be expensive nor not feeling comfortable about sharing their financial situation, as there is low agreement for these two statements.

• The number of Albertans personally impacted by the drop in oil prices is continues to increase incrementally for the third straight wave (down 7 ppts since W1), with just under half of Albertans feeling the effects of this decline.

• Cost of living increases and slow down in business continue to be the central factors which Albertans feel they have been impacted by these price drops. However, job loss has increased significantly this wave (W4 30% vs. W3 24%).

• Reduced spending is the main change Albertans have made to their lifestyle, although those impact by the price drop are doing it much more so than those who indicate they were not affected by the drop in oil prices (68% vs. 27%).

5


Investor Beat Intent to save/invest in relation to social, economic and political factors

Investor Beat

7

Albertans are holding steady in Wave 4, with the majority feeling positive or neutral towards saving and/or investing. Among Albertans who think it is a good time, significantly less mentioned the poor/unstable economy as reasons behind

saving/investing. For those that feel it is a bad time, significantly more mentioned the barriers of not having additional funds for investing and seeing that it is poor time as roadblocks to saving/investing.

Base: All respondentsQ1. Taking everything into consideration, is now a good time or bad time to save and/or invest your money?Base: Rated [good time/bad time]Q1b. Why do you think now is a good time to save and/or invest?Q1c. Why do you think now is a bad time to save and/or invest?

Significantly higher than previous wave

Significantly lower than previous wave

34%

53%

13%

32%

54%

14%

31%

60%

10%

31%

59%

10%

Good time (rated 8, 9, 10)

Neutral (rated 3, 4, 5, 6, 7)

Bad time (rated 0, 1, 2)

Wave 4 (n=1,007)Wave 3 (n=1,004)Wave 2 (n=1,024)Wave 1 (n=994)

Good time

Bad time

Only showing mentions 13% or higher in either wave.

Only showing mentions 9% or higher in either wave.

Calgary residents, men and those with more than $25K in investible assets are more

likely to feel positive towards saving/investing than their counterparts.

W3 (n=322) W4 (n=342)Investment Products (Net) 34% 36%

Good time to invest 23% 21%Low stock market 16% 17%

Savings (Net) 30% 28%Good time to save 30% 27%

Economy (Net) 31% 26%Poor/unstable economy 26% 18%

Miscellaneous (Net) 24% 25%For present/future needs 13% 13%

W3 (n=139) W4 (n=128)Economy (Net) 47% 44%Poor economy 34% 31%

Unemployment 15% 13%No money (Net) 24% 37%

No extra money to invest 16% 26%No income 11% 5%

Miscellaneous (Net) 27% 19%High cost of living 9% 12%Investment (Net) 19% 14%

Low interest rates 14% 6%Poor time to invest 3% 9%

Investor Beat

8

Similar to the previous three waves, eight-in-ten Albertans continue to perceive that saving and/or investment opportunities will remain the same in the next 3 to 6 months.

There has been a significant lift in the number of Albertans who see it as much better versus last wave, which may signal a positive change in perception towards the economy.

Base: All respondentsQ2. In the next 3-6 months, do you expect it to be a much better or much worse time to save and/or invest your money?



15%

78%

6%

11%

81%

8%

11%

84%

4%

12%

82%

6%

Much better (rated 8, 9, 10)

Same as now (rated 3, 4, 5, 6, 7)

Much worse (rated 0, 1, 2)


Investor Beat – Economy

9

There are significant decreases among those who view the global economy, Canadian economy and the Canadian dollar as much worse compared to 6 months ago. These declines in negative perceptions will be monitored next wave, as it may represent a change to a more positive outlook among Albertans.



5%

7%

5%

6%

70%

64%

47%

62%

19%

26%

44%

29%

6%

3%

4%

2%

2%

2%

2%

2%

68%

62%

47%

39%

24%

33%

47%

57%

6%

3%

4%

2%

2%

3%

2%

2%

74%

72%

59%

52%

16%

21%

35%

42%

8%

4%

4%

4%

1%

2%

2%

2%

74%

77%

70%

65%

16%

15%

23%

28%

9%

6%

5%

5%

Global economy

Canadian economy

-14%-22%-14%-15%

-19%-31%-18%-13%

-38%-45%-33%-21%

-23%-55%-40%-26%

NET score betweenMuch Better and

Much Worse

Alberta economy

Canadian dollar

Much better(rated 8, 9, 10)

Same as 6 months ago(rated 3, 4, 5, 6, 7)

Much worse(rated 0, 1, 2)

Wave 3 (n=1,004) Don’t knowWave 2 (n=1,024)

Wave 1 (n=994)

Wave 4 (n=1,007)

NOTE: W4 question was reprogrammed and split into two questions and the format the scale was shown was modifiedBase: All respondentsQ3. Compared to 6 months ago, do you think the following factors are much better or much worse?

Investor Beat – Economy (cont.)

10

The majority of Albertans continue to say that cost of living, taxes and employment opportunities have remained the same versus 6 months ago.



6%

5%

6%

64%

69%

52%

27%

20%

40%

3%

6%

3%

4%

3%

2%

62%

70%

51%

32%

22%

44%

2%

5%

3%

4%

2%

3%

72%

78%

61%

21%

14%

32%

3%

6%

4%

3%

2%

2%

73%

76%

71%

20%

16%

21%

4%

6%

6%

Taxes

Cost of living

Employment/job opportunities





Wave 1 (n=994)

Wave 4 (n=1,007)

-21%

-28%

-17%

-17%

-15%

-19%

-12%

-14%

-34%

-42%

-29%

-19%


Much Worse

NOTE: W4 question was reprogrammed and split into two questions and the format the scale was shown was modifiedBase: All respondentsQ3. Compared to 6 months ago, do you think the following factors are much better or much worse?

Investor Beat – Saving and Investment Opportunities

11

Significantly more Albertans are mentioning that oil market prices and the stock market are same or better versus 6 months ago. All other saving/investment options measured have seen a significant decrease in the number of Albertans having negative perceptions about them.



8%

7%

6%

6%

5%

72%

70%

56%

64%

67%

10%

16%

34%

20%

14%

10%

7%

4%

10%

15%

5%

4%

3%

4%

2%

74%

70%

39%

61%

58%

13%

20%

54%

26%

26%

8%

6%

3%

9%

13%

5%

4%

3%

3%

2%

78%

76%

51%

69%

62%

9%

13%

41%

18%

21%

8%

7%

5%

10%

15%

4%

4%

2%

3%

2%

77%

76%

62%

71%

69%

7%

10%

30%

14%

11%

12%

10%

6%

12%

18%

Interest rates

Oil market prices

Natural gas market/prices

Stock market

-2%-8%-4%-3%

-9%-16%-9%-6%

-28%-51%-38%-28%

-14%-22%-15%-11%

-9%-24%-19%-9%


Much Worse

Real estate market/prices





Wave 1 (n=994)

Wave 4 (n=1,007)

NOTE: W4 question was reprogrammed and split into two questions for a shorter list of factors for respondents to go through in each questionBase: All respondentsQ3. Compared to 6 months ago, do you think the following factors are much better or much worse?


Understanding Albertans DeeperSaving/investing and financial goals

Understanding Albertans Deeper – Savings/Investments Portfolio

13

Base: Wave 4 – Total answering; Wave 1-3 – All respondentsNOTE: Respondents were split in W4 where _half answered the Q8 tracking question in W4, and the other half answered the new Q8 options. Interpret with caution due to this change.Q8_original. What percentage of your savings and investments are in the following types of products?



There has been a significant drop in the number of Albertans with long term mutual funds/stocks/bonds this wave. However, the diversity of the savings/investment portfolio remained stable.

Albertans with investible assets under $100K, Millennials (18-34) and women continue to be significantly more likely to save/invest in cash products. Similar to last wave, long term mutual funds/stocks/bonds are more likely to be used by Albertans 35 or older and those with asset values of $100K.

Have ANY savings or investments

% of Albertans with this product

% of Albertan total savings/investments by

productDon’t have any savings or

investments

Wave 1(n=994)

Wave 2(n=1,024)

Wave 3(n=1,004)

Wave 4(n=495)

Wave 1(n=994)

Wave 2(n=1,024)

Wave 3(n=1,004)

Wave 4(n=495)

Wave 1(n=994)

Wave 2(n=1,024)

Wave 3(n=1,004)

Wave 4(n=495)

Wave 1(n=994)

Wave 2(n=1,024)

Wave 3(n=1,004)

Wave 4(n=495)

Cash

84% 83% 82% 80%

79% 78% 76% 76% 44% 45% 44% 48%

16% 17% 18% 20%

Long-term mutual funds/stocks/bonds 61% 61% 61% 53% 39% 34% 35% 31%

Real estate (excl. primary residence) 21% 26% 24% 25% 9% 11% 11% 11%

Alternatives 18% 21% 21% 23% 3% 4% 4% 5%

Other 17% 20% 20% 17% 6% 6% 7% 6%

Among Albertans who have savings and/or investments, the majority intend to maintain the same amount in the following products: cash, long term mutual funds/stocks/bonds and real estate. However, there is a higher number who are looking to decrease their “other” investment options this wave - those 55+ are more likely to be doing this versus the other age cohorts.

Same as the last wave, Millennials intend to increase their savings/investments in all of the investment products measured compared to the middle and older age sets.

Understanding Albertans Deeper

14

NOTE: Respondents were split in W4 where _half answered the Q9_original tracking question in W4, and the other half answered the new Q9 options. Interpret with caution due to this change.Base: Have any savings or investmentsQ9. In the next 3-6 months do you intend to increase, decrease or keep the same amount of savings and/or investments in each of the following products?



16%

9%

5%

6%

4%

78%

81%

81%

81%

81%

5%

9%

13%

12%

14%

17%

10%

5%

5%

4%

77%

84%

85%

86%

86%

6%

6%

9%

9%

10%

12%

7%

4%

3%

3%

83%

86%

86%

86%

87%

5%

7%

10%

11%

10%

15%

7%

3%

2%

3%

81%

87%

89%

89%

89%

4%

6%

8%

9%

8%

Cash

Long-term mutual funds/ stocks/bonds

Real estate (excl. your primary residence)

Alternatives

Other

Wave 3 (n=925)Wave 2 (n=851)Wave 1 (n=832)

Wave 4 (n=394)Intent to increase savings/investments (rated 8, 9, 10)

Keep the same amount of savings/investments (rated 3, 4, 5, 6, 7)

Intent to decrease savings/investments (rated 0, 1, 2)


15

Base: Have any savings or investmentsQ13a. In the past 6 months, did the return from your savings and/or investments increase or decrease?

While significantly less Albertans are indicating a decrease in their savings/investments this wave, there appears to be someuncertainty on how the financial market performs, as a larger number of Albertans are indicating “don’t know” on the performance of their savings/investments.

Significantly more middle-aged (35-54 years) and older Albertans (55+) continue to indicate their returns have decreased (36% and 40%) versus the younger age group of 18-34 year olds (27%).



42%

34%

24%

38%

44%

19%

37%

43%

20%

49%

29%

22%

Increase

Decrease

Don't know

Wave 4 (n=773)Wave 3 (n=825)Wave 2 (n=851)Wave 1 (n=832)

Mean (incl. 0) Don’t know

Wave 4 (n=325) 11.2 26%

Wave 3 (n=310) 10.7 28%

Wave 2 (n=308) 10.5 30%

Wave 1 (n=406) 8.2 31%

Mean (incl. 0) Don’t know

Wave 4 (n=265) 13.2 26%

Wave 3 (n=361) 14.5 30%

Wave 2 (n=365) 13.3 26%

Wave 1 (n=241) 14.1 28%

Base: Savings and/or investments increased in the past 6 monthsQ13b. By approximately what percentage did the return from your savings and/or investments increase?Base: Savings and/or investments decreased in the past 6 monthsQ13c. By approximately what percentage did the return from your savings and/or investments decrease?

Albertans with $100K or more in

investible assets are more likely to

indicate gains in W4 versus those with less than $100K.

Albertans with less than $25K in

investible assets are more likely to state not knowing how

their savings/investments

performed in the P6M (41%).


16

5%

33%

43%

19%

5%

32%

42%

21%

6%

28%

41%

24%

6%

31%

41%

22%

Base: Have any savings or investmentsQ10. Which of the following best describes your investment knowledge?Q11. How would you describe your risk tolerance when it comes to savings and investments?Q12. What is more important to you?

Self-reported investment knowledge has stayed the same for four waves, with the bulk of Albertans stating having good or fair knowledge in this area. Risk tolerance has also remained stable wave over wave.

Albertans are shifting their opinions slightly this wave to putting more emphasis on growing their money versus not losing their money. Males and those less than 55 years old are more likely to say growing their money is more important, whereas females and those 55+ years old are more likely to prioritize not losing their money.



Risk Tolerance Most ImportantInvestment Knowledge

Excellent

Good

Fair

Inexperienced

5%

21%

36%

21%

17%

5%

21%

37%

24%

14%

6%

19%

32%

24%

18%

6%

21%

33%

24%

16%

High

Medium-High

Medium

Medium-Low

Low

55%

45%

51%

49%

51%

49%

53%

47%

Growing your money

Not losing your money

Wave 3 (n=825)Wave 2 (n=851)Wave 1 (n=832)

Wave 4 (n=773)

For Albertans currently without savings or investments, there is a directional increase for those who state they will likely start to save or invest in the next 12 months. Over one-third would like to start within the year.

Understanding Albertans Deeper – No Savings or Investments

17

35%

65%

27%

73%

31%

69%

25%

75%

Top 5 Box Low 6 Box

Wave 4 (n=234) Wave 3 (n=179) Wave 2 (n=173) Wave 1 (n=162)

Base: Don’t have any savings or investmentsQ5. How likely are you to start saving and/or investing in the next 12 months? (0-10 pt scale)



Not having the extra funds (65%) for saving or investing and paying off debt (36%) continue to be the top reasons why Albertans without savings or investments will not likely start.

Reasons for Being Unlikely to Save/Invest

18

65%

36%

23%

14%

14%

12%

11%

68%

43%

25%

14%

16%

15%

12%

65%

33%

19%

10%

16%

11%

11%

62%

33%

17%

12%

11%

12%

18%

Don't have extra money to save/invest

Focus on paying off debt

Priorities are elsewhere right now and you'll think about it

later

Don't know what to save or invest in

Don't know where to start

Worried your money would be at risk

Returns are low

Base: Not likely to start saving and/or investing in the next 12 months Q6. Why are you not likely to start saving and/or investing in the next 12 months?



8%

8%

7%

3%

3%

0%

4%

10%

10%

9%

6%

2%

0%

8%

13%

11%

10%

5%

7%

3%

8%

7%

12%

8%

7%

2%

2%

7%

Don't have time

Fees are too high

Relying on the Canadian pension plan

Relying on a company pension plan

Have other types of investments (i.e. real estate,

property, etc.)

Retirement plan includes an expected inheritance

Other


Understanding Albertans Deeper – Top 10 Personal Financial Goals

19

51%

44%

42%

40%

37%

46%

45%

44%

39%

39%

51%

38%

41%

36%

35%

49%

42%

40%

36%

38%

Saving for retirement

Paying down debt

Managing day-to-day finances

Building up an emergency fund

Saving for a vacation

Base: All respondentsQ14. Which of the following are financial goals for you personally?



Saving for retirement (51%) continues to be the top financial goal for Albertans, and also increased significantly this wave. This upswing is driven by Gen-Xers (62%) and Albertans with investible assets greater than $25K.

The remaining financial goals in the top 10 have stayed in the same rank order wave over wave.

35%

23%

22%

19%

19%

38%

25%

20%

21%

18%

32%

22%

19%

21%

18%

30%

22%

18%

20%

16%


Reducing your spending

Saving money in case of an illness/death in your family

Saving for a house

Reducing the amount of tax you pay

Saving for your children's/ grandchildren's education

Understanding Albertans Deeper – Other Personal Financial Goals

20

19%

13%

14%

11%

9%

18%

15%

15%

9%

10%

17%

16%

12%

7%

9%

18%

14%

12%

8%

10%

Saving for a major purchase (e.g. car, TV,

boat, RV, etc.)

Making charitable donations

Saving for a house renovation

Saving for your education

Accumulating an estate

Base: All respondentsQ14. Which of the following are financial goals for you personally?



Additional financial goals outside the top 10 are unchanged wave over wave.

9%

8%

7%

6%

8%

10%

9%

8%

8%

9%

6%

7%

7%

6%

9%

7%

6%

6%

6%

11%


Saving for a wedding/ honeymoon/baby

Starting or owning a business

Buying proper life insurance coverage

Saving for a second property

Nothing specific, justwant to grow my money

5%

10%

8%

7%

5%

48%

43%

42%

41%

34%

9%

7%

6%

6%

6%

47%

39%

47%

35%

35%

8%

4%

7%

9%

6%

50%

34%

45%

37%

28%

10%

11%

7%

11%

2%

50%

31%

45%

42%

35%


21

Base: Financial goals selectedQ15. How do you feel about your progress in achieving your financial goals?

Albertans are prioritizing their retirement savings, as there is a reduction in the number who feel they are behind in this savings goals compared to last wave, All other savings relating financial goals have no major changes wave over wave.

Albertans with investible assets of over $100K feel better prepared with their retirement savings versus those who have under $100K in investible assets. In fact, six-in-ten Albertans with investible assets <$25K feel far behind on this goal.



Children’s/grandchildren’s education

Your education

Vacation

Retirement

Major purchase (e.g. car, TV)

Progress of Achieving Financial Goals – Savings Related

Savings for …35%

35%

39%

44%

39%

34%

43%

36%

52%

46%

34%

47%

37%

48%

50%

32%

38%

35%

40%

43%

Wave 4 (n=varies)Wave 3 (n=varies) Ahead (Net) On TrackBehind (Net)Wave 2 (n=varies)Wave 1 (n=varies)

5%

6%

7%

8%

5%

33%

35%

30%

37%

25%

6%

6%

5%

5%

5%

32%

30%

29%

22%

21%

5%

2%

7%

5%

4%

34%

34%

21%

19%

25%

1%

6%

8%

8%

7%

36%

34%

21%

18%

26%


22

Base: Financial goals selected *indicates small sample size (<100)Q15. How do you feel about your progress in achieving your financial goals?

Consistent wave over wave, around half of Albertans continue to feel that they are behind on their financial goals relating to the home (house in general, renovations) and emergency money in case of illness/death in the family.

For the small group that own a second property, significantly less feel behind in achieving this financial goal.



Money in case of an illness/death in your family

House renovation

*Wedding/honeymoon/baby

*Second property

House

Progress of Achieving Financial Goals – Savings Related

Savings for …


46%

50%

39%

30%

48%

50%

48%

37%

48%

54%

53%

55%

46%

61%

48%

50%

47%

53%

51%

42%

13%

12%

13%

15%

11%

56%

35%

59%

48%

41%

12%

11%

10%

7%

6%

52%

23%

60%

38%

50%

10%

3%

9%

11%

8%

53%

25%

64%

46%

46%

8%

11%

10%

10%

5%

56%

23%

64%

45%

49%


23


Similar to the last three waves, Albertans are the most comfortable with the progress (either ahead or on track) on managing their day-to-day finances.

There is also a significant decline in the proportion of Albertans who indicate that they are feeling behind in achieving their goal of purchasing life insurance coverage.



Making charitable donations

Buying proper life insurance coverage

Managing day-to-day finances

*Accumulating an estate

Reducing your spending

Progress of Achieving Financial Goals

26%

29%

26%

28%

45%

28%

47%

29%

47%

42%

31%

56%

26%

36%

42%

34%

43%

24%

34%

44%


8%

11%

13%

9%

48%

40%

29%

31%

6%

6%

6%

5%

49%

41%

25%

34%

7%

6%

6%

6%

51%

45%

29%

33%

7%

9%

14%

5%

44%

43%

28%

32%

Understanding Albertans Deeper (cont.)

24


Albertans appear to feel better about paying off their debts, as there are significant gains (albeit still a small proportion) in the number of Albertans who feel ahead on this. In addition, there is also a jump in those who feel ahead in their emergency fund development.



Reducing the amount of tax you pay

Paying down debt

*Starting or owning a business

Building up an emergency fund

Progress of Achieving Financial Goals (cont.)

37%

46%

37%

50%

39%

51%

48%

52%

39%

47%

38%

53%

41%

45%

42%

54%



25

52%

41%

32%

28%

26%

15%

54%

42%

31%

28%

31%

13%

58%

43%

24%

27%

n/a

16%

56%

44%

22%

30%

n/a

17%

Cost of living

Unexpected expenses

Job loss/reduction

Low wages

Too much spending

Taking time to make it a priority

Base: Behind in achieving financial goalsQ16. You mentioned you are behind in at least one of your financial goals. What is preventing you from being on track?



Cost of living followed by unexpected expenses and job losses continue to be the main reasons Albertans indicated as being barriers in meeting their financial goals.

Spending is being curbed, as significantly less Albertans indicate this as a reason that prevents them from meeting financialgoals.

Reasons Falling Behind in Financial Goals

11%

6%

4%

6%

2%

18%

7%

7%

7%

1%

17%

8%

5%

10%

1%

16%

7%

7%

7%

3%


Low returns

Need financial advice/expertise

Wrong savings/investment

product

Other

Don't know

Impact from Drop in Oil Prices

Impact of Drop in Oil Prices

27

Base: All respondentsQ21. Have you personally been impacted by the recent drop in oil prices?Base: Impacted by the recent drop in oil pricesQ22. In what ways have you personally been impacted by the recent drop in oil prices?



Almost half of Albertans (49%) say they have been personally impacted by the drop in oil prices. While not a significant jump in Wave 4, this represents the third wave of incremental gains, and up 7 points since the inception of this study.

Among those impacted by the oil price drops, job loss has increased significantly this wave (30% vs. 24%), while cost of living increases and slow down in business remain the top 2 factors. Gen-Xers and Millennials are more likely to be impacted by job loss than Boomers, while Boomers are seeing their investments and real estate decline in value more so than their counterparts.

49%

51%

48%

52%

45%

55%

42%

58%

Yes

No


Personally Impacted Ways Impacted

Increased cost of living

Slow down in business

Job loss

Change in gas price at gas station

Decline in investment value

Can't find employment

Residents of Calgary (55%) and Edmonton (53%) claim to be significantly more impacted than other parts of

Alberta.35-54 year olds continue to feel the effects of the drop

in oil prices more so than those 55+.

41%

35%

30%

30%

26%

22%

45%

37%

24%

32%

28%

19%

43%

39%

19%

39%

27%

14%

n/a

42%

21%

n/a

n/a

n/a

Salary freeze

Salary reduction

Decline in real estate value

Reducing business expenses

Other

21%

20%

16%

9%

4%

20%

17%

21%

8%

5%

22%

19%

17%

12%

4%

20%

13%

n/a

11%

25%Wave 4 (n=487)Wave 3 (n=485)Wave 2 (n=467)Wave 1 (n=413)

Similar to the previous wave, reduced spending remains the main adjustment Albertans have made to their lifestyle due to the decrease in oil prices for those who have been impacted by the price drop. There has also been a significant lift in those who have changed their investments to a lower risk option in wave 4.

Ad Hoc Section – Impact of Drop in Oil Prices

28

68%

30%

27%

27%

20%

18%

14%

69%

27%

23%

31%

17%

18%

12%

61%

29%

23%

29%

18%

14%

13%

56%

26%

18%

27%

16%

17%

10%

Reduced your spending

Changed a vacation plan

Stopped some of your regular savings/investment contributions

Put off making a big purchase (i.e., a car, TV, boat, RV, etc.)

Put off a planned home renovation

Withdrew some of your long term savings/investments

Put off buying a new house

Base: Impacted by the recent drop in oil pricesQ23. As a result of the recent drop in oil prices, which of the following changes have you made?



Changes Made

13%

10%

9%

8%

4%

2%

10%

9%

8%

9%

8%

4%

4%

10%

10%

6%

8%

5%

1%

2%

17%

7%

5%

5%

3%

2%

4%

20%

Wave 4 (n=487)

Wave 3 (n=485)

Wave 2 (n=467)

Wave 1 (n=413)

Shifted your savings/investments to a more conservative/lower risk

selection

Planning to leave the province due to instability in the oil sector

Took out a new loan/started to use an existing line of credit

Downsized your home to reduce expenses

Remortgaged your home to reduce expenses

Other

None

Millennials are delaying a purchase of a new home or downsizing to cope with the oil price drop significantly more than the

other two age cohorts. In addition, a higher proportion indicate that they may leave Alberta due to the instability in the

oil industry (12%).

For Albertans not impacted by the oil price drop, six-in-ten have not done anything differently to their lifestyle. The biggest change made is reducing their spending for one-quarter of this group. In comparison, over two-thirds of those feeling the effects of the reduction in oil prices have done the same.

Ad Hoc Section – Impact of Drop in Oil Prices

29

68%

30%

27%

27%

20%

18%

14%

13%

10%

9%

8%

4%

2%

10%

Base: All Respondents Note: New in W4, question asked also among Albertans not impacted by drop in oil pricesQ23. As a result of the recent drop in oil prices, which of the following changes have you made?

Changes MadeImpacted by Drop in Oil Prices (n=487) Not Impacted by Drop in Oil Prices(n=520)

27%

9%

4%

7%

5%

3%

3%

4%

1%

2%

1%

1%

0%

60%

Reduced your spending

Changed a vacation plan

Stopped some of your regular savings/investment contributions

Put off making a big purchase (i.e., a car, TV, boat, RV, etc.)

Put off a planned home renovation

Withdrew some of your long term savings/investments

Put off buying a new house

Shifted your savings/investments to a more conservative/lower risk selection

Planning to leave the province due to instability in the oil sector

Took out a new loan/started to use an existing line of credit

Downsized your home to reduce expenses

Remortgaged your home to reduce expenses

Other

None

Ad-hoc SectionWho Are Albertans Using for Financial Help?

Ad Hoc Section: Past 12 Month Financial Advice Sources

31

Over three-in-ten Albertans have sought financial advice from a friend/family member or a financial advisor in the past year. The internet is also a key source for financial advice.

Millennials are using friends/family members as well as a personal financial management tool more so than the other two age cohorts.

Declining38%

33%

31%

23%

17%

15%

10%

9%

4%

4%

1%

30%

Friend/family member

Financial advisor/financial planner

Internet/websites

Banker

Personal financial management tool

Accountant

Books/magazines

Realtor

Lawyer

Other

None

Base: All respondents (n=1,007)AH1. Which of the following sources have you used in the past 12 months for financial advice?

Albertans with investible assets greater than $100K have used the services of a financial advisor in the

P12M significantly more than those with assets under this threshold.

Personal financial management tools are also used more often by Albertans in the highest investible

asset bracket of $500K+.Individuals with assets <$25K are more likely to ask for financial advice from friends or family members

versus those above $100K in assets.

25%

23%

14%

15%

14%

8%

8%

12%

8%

61%

51%

47%

43%

41%

39%

39%

37%

37%

Ad-Hoc Section: Relying on Financial Advice Sources More or Less

32

Base: Sources used for financial advice in P12M (n=varies) *indicates very small sample size (<50) – interpret with cautionAH2. In the past 12 months have you relied on the following sources for financial advice much more, somewhat more, about the same, somewhat less or much less than previous years?

At least four-in-ten Albertans are relying on their sources more for financial advice in the past year compared to the past.

*Lawyer

*Realtor

Internet/websites

Personal financial management tool

Books/magazines

Accountant

Banker

Friend/family member

Financial advisor/financial planner

Much more Somewhat more

3%

1%

3%

1%

1%

1%

3%

1%

3%

13%

6%

7%

6%

2%

6%

4%

3%

Much lessSomewhat less

Relied on Less in P12M Relied on More in P12M

Ad Hoc Section: Areas Desired for Further Financial Advice

33

Retirement planning and financial goal planning are the main subjects where Albertans would like to be more educated in. Managing day-to-day finances and how to save for short-term goals are also of interest.

18-34 year olds are generally interested in obtaining advice across most of the areas listed compared to their age counterparts.Of most interest are short-term saving strategies (36%) and how to manage day-to-day finances (29%). 35-54 year olds would like to gain advice on retirement planning more so than 18-34 year olds and those 55+.

Declining38%

Base: All respondents (n=1,007)AH4. In what areas would you like to get further financial advice? Please select all that apply.

30%

25%

19%

18%

16%

13%

12%

9%

6%

2%

34%

Planning for your retirement

Overall financial goal planning

Day-to-day managing finances

Short-term savings strategies (i.e., for a house, vacation, wedding, etc.)

Information on the tax implications of different saving/investment products

Setting up a debt management/ repayment plan

Education saving/payment strategies

Information on real estate investing

Information on different insurance products

Other

Don’t know

Albertans with investible assets less than $25K are most interested in advice on short-term saving strategies, day-to-day managing of finances and

setting up debt payment plans than their counterparts.

On the other hand those with $100K+ in investible assets are interested in learning more about tax

implications of different financial products.

31%

11%

58%

Yes currently

Yes in the past

No

Ad Hoc Section: Use of Financial Advisors

34

Among those who use financial advisor services, having a complicated financial situation and recommendations from the bank or friend/family member are the main reasons that they starting to use one.

For the majority who do not have a financial advisor, not having enough financial assets and the ability to do it themselves arewhat deters these Albertans from using one.

Base: All respondents (n=1,007)AH6. Do you have a dedicated financial advisor (i.e. Financial Advisor, Financial Planner, Investment Counsellor, Broker, etc.) who you use for your savings and/or investments?AH7. Why did you start working with a dedicated financial advisor?AH8. Why don’t you have a dedicated financial advisor?

Dedicated Financial Advisor? Reasons Started Working with Financial Advisor (n=308)

31%

30%

28%

16%

12%

My financial situation got more complicated

My bank suggested it

Friend/family member suggested it

Life event (i.e., married, child, divorce, etc.)

Other

Reasons for Not Having Dedicated Financial Advisor (n=699)

39%

28%

22%

16%

17%

16%

4%

8%

Don’t have enough financial assets

I can do it myself

Advisors charge too much

Don’t like to share my financial info

Don’t have time

Don’t trust advisors

Can’t find one

Other

Ad Hoc Section: Do Albertans Have Financial Plans?

35

For those who claim to have a financial plan, information on their retirement and investments are the main items in their plan.

AH9. Do you have a financial plan?Base: Have a financial plan (n=464)AH10. Is your financial plan in a written document that you can reference?AH11. Which of the following aspects of financial planning are part of your financial plan?AH12. Have you made changes to any of your financial plans in the past 12 months given the changes in the economy?

46%currently have a

financial plan

11% don’t knowBase: All wave 4 respondents (n=1,007)

Among those with a financial

plan,

47%have a written

document

Items in Financial Plan

52%

42%

24%

23%

19%

18%

16%

15%

4%

3%

Retirement Plan

Investment Plan

Debt Management Plan

Insurance Plan

Tax Plan

Education Savings Plan

Comprehensive Financial Plan (includes all or most of the

plans shown)

Estate Plan

None

Don’t know

43%have made

changes to their financial plans in

the past 12 months due to changes in the

economy

Four-in-ten Albertans agree that they are tracking their spending and saving. Boomers are most likely doing this, with 49% agreeing with this sentiment.

There is concern among one-quarter of Albertans on how to get through the difficult economic time, yet only one-in-five agree that they have a plan in place to help with this.

One-quarter of Albertans express disagreement on being happy with their current financial situation, which goes in hand with a large chunk (39%) not feeling like they have saved enough for retirement.

Ad Hoc Section: Agreement with Attitudinal Statements

36

Base: All respondents (n=1,007)AH5. How strongly do you agree or disagree with the following statements?

40%

26%

22%

17%

17%

45%

49%

55%

54%

41%

11%

20%

17%

25%

39%

3%

4%

5%

3%

5%

Agree (rated 8, 9, 10) Neutral (rated 3, 4, 5, 6, 7) Disagree (rated 0, 1, 2) Don't know

I track all my spending and saving

I worry about getting through this economic

time

I have a plan on how to get through this economic

time

I am happy with my current financial situation

I am saving/have saved enough for my retirement

Close to six-in-ten Albertans are neutral in agreement on whether then need financial advice at this moment. Although Albertans are not quite that interested in receiving advice, it is not because of perceiving financial advice to be

expensive nor not feeling comfortable about sharing their financial situation.

Ad Hoc Section: Agreement with Attitudinal Statements

37

Base: All respondents (n=1,007)AH5. How strongly do you agree or disagree with the following statements?

18%

16%

15%

57%

43%

43%

20%

32%

35%

5%

10%

6%

Agree (rated 8, 9, 10) Neutral (rated 3, 4, 5, 6, 7) Disagree (rated 0, 1, 2) Don't know

I could use some advice on my financial situation

I should get financial advice but it is too

expensive

I should get financial advice but I’m not

comfortable sharing my financial situation

Demographics

Demographics

39



Base: All respondentsD1. Please indicate your gender.D2. Which age range do you belong to?D3. In which area of Alberta do you live? D7. Which of the following best describes your total household income?

50% 50%

50% 50%

18 to 3432%33%33%33%

35 to 5438%38%38%38%

55+29%29%29%29%

Edmonton33%33%34%34%

Calgary36%36%36%36%

Other Alberta31%30%30%30%

Household Income

$30K or less 11% 10% 12% 14%

$30K to $50K 13% 15% 15% 12%

$50K to $80K 20% 20% 21% 18%

$80K to $100K 13% 14% 14% 12%

$100K to $150K 17% 16% 16% 17%

$150K to $250K 6% 9% 7% 6%

$250K or more 2% 2% 1% 3%

Prefer not to say 14% 11% 11% 15%

Don’t know 2% 2% 2% 2%50% 50%

Wave 2 (n=1,024)Wave 1 (n=994)

Wave 3 (n=1,004)Wave 4 (n=1,007)

50% 50%

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