Oaken Financial's advice on retirement: do
your research!
TORONTO, Nov. 20, 2014 /CNW/ - According to The Oaken
Financial Retirement Readiness Poll conducted by Ipsos Reid, 54% of
Canadians age 55+ don't know if they're getting the best possible
rates on their investments from their current banks. And while
financial literacy typically steers smarter investment decisions,
it can be challenging — no matter how financially literate a person
is — to get a coherent story from a bank that is written or
explained in an easy to understand manner.
The vast majority of respondents also feel deceived by the
tactics employed by the financial institutions they've been
investing with over the years. As much as 93% of respondents said
they don't like the tease 'em and trap 'em practices many banks
resort to. Many financial institutions offer enticing promotions
for new customers — from free iPads to high (but temporary)
interest rates — but don't extend these same deals to existing
clientele. Still, despite their frustration and lack of trust, 75%
consider switching financial institutions to be too much of a
hassle.
In response to these concerns, Oaken Financial is taking a
different approach when it comes to saving, opting for a what
you see is what you get approach. "We've never gone the route
of teaser rates or promotions with lots of fine print. Instead we
believe in making sure all of our customers, big and small, new and
old, get the same great service and investment opportunities with
no surprises — no bait and switch," said Benjy Katchen, Vice President of Deposits for
Oaken Financial. "Our message to Canadians, especially during
Financial Literacy Month, is to do your research."
Easing worries, empowering research
Having enough money for retirement is a concern the majority of
Canadians face. Whether that's because of the rarity of company
pension plans or lack of savings due to a variety of reasons, 57%
of those polled say they're worried they won't have enough money
each month after they stop working. Interestingly this number
declines only slightly (to 49%) for those in the highest household
income bracket (>$100K).
All of this uncertainty is causing more than one quarter of
Canadians ages 55 and up to admit to losing sleep at night. "We
encourage our customers in this age bracket to invest at least a
portion of their nest egg in investments that provide
predictability and stability such as Guaranteed Investment
Certificates," said Katchen. Canadians can easily compare GIC rates
across all financial institutions by looking at rate tables in most
major newspapers or via websites like RateSupermarket.ca or
Cannex.
Doing the requisite research often results in reward. In this
low interest rate environment, a one percent difference could
actually result in doubling the interest rate. If this is the case,
then switching financial institutions might actually be worth the
hassle.
About Oaken Financial
Oaken Financial was launched by
Home Trust Company in 2013 to offer Canadians a competitive
alternative to manage their savings independently, featuring some
of the highest GIC rates available with no monthly fees. Oaken
Financial is a trademark of Home Trust, which is a member of the
Canada Deposit Insurance Corporation (CDIC). Deposits with Oaken
are eligible for deposit insurance up to limits established by
CDIC. Oaken has locations in Toronto, Calgary, Halifax and Vancouver, and provides customer service via
phone and email to customers across the country. The name Oaken was
carefully selected to represent the values of strength, stability
and security.
About Home Capital and Home Trust
Home Capital Group
Inc. is a public company, traded on the Toronto Stock Exchange
(HCG), operating through its principal subsidiary, Home Trust
Company. Home Trust is a federally regulated trust company offering
deposits, residential and non-residential mortgage lending,
securitization of insured residential first mortgage products,
consumer lending and credit card services. Licensed to conduct
business across Canada, Home Trust
has offices in Ontario,
Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.
SOURCE Home Capital Group Inc.