Overview of Household Savings in Canada
Household savings in Canada points at the savings made by the families of Canada. The household savings in Canada are important in the context of the overall Canadian savings and its economy.Ways of Encouraging Household Savings in Canada
As per the researches that have been done on the patterns and levels of household savings in Canada it has been said that perhaps the most suitable way to promote savings in the Canadian families would be to offer tax benefits.According to these reports in order for the tax benefits to be successful they need to be catered to the specific people who need them the most. The tax subsidies like the 401(k) and the Individual Retirement Accounts are regarded to be important in this regard.
At the higher levels of the decision making process of the state of Canada, it is said that the eligibility criteria of the Individual Retirement Accounts should be reviewed so that the unimpressive state of the Canadian household savings could be bettered.
The same people are also of the opinion that the facilities of the 401(k)s should be increased. This is expected to improve the state of household savings in Canada.
Tendencies in Household Savings in Canada
It has been observed that the Canadian households put their savings in investment assets.Rates of Household Savings in Canada
The following table provides the rates of household savings in Canada:| Year | Percentage of Household Savings |
|---|---|
| 1985 | 15.8 |
| 1986 | 13.4 |
| 1987 | 11.9 |
| 1988 | 12.3 |
| 1989 | 13 |
| 1990 | 13 |
| 1991 | 13.3 |
| 1992 | 13 |
| 1993 | 11.9 |
| 1994 | 9.5 |
| 1995 | 9.2 |
| 1996 | 7 |
| 1997 | 4.9 |
| 1998 | 4.9 |
| 1999 | 4.1 |
From this table it can be clearly understood that in the recent years, especially from 1985 to 87 and from 1993 onwards the rate of household savings in Canada has been going down at a steady rate.
