Revealing survey challenges preconceptions
The CSF and ÉducÉpargne commissioned an extensive survey by the firm Léger on the savings habits of the Quebec population. The results reveal persistent inequalities between men and women.
More than 1500 individuals aged 25 to 74 responded to the CSF's web questionnaire between December 5 and 16, 2023. "It's a very robust and representative sample," confirms Guillaume Gingras, research director at Léger. For comparison, the renowned political surveys by the firm generally have 1000 respondents.
The results indicate that the path to retirement savings for women continues to be fraught with more obstacles than for men. "They remain more responsible for household tasks, their incomes allow them less room to save, and they display less confidence in their financial skills, as well as a lesser appetite for risk than men," the pollster notes.
Separate Management
"This survey shows that the redistributive function associated with couples and upon which our social policies are based is largely a myth," asserts Hélène Belleau, full professor at the Centre Urbanisation Culture Société of INRS.
According to the survey, less than half of couples manage their money together. Therefore, the idea of a family income doesn’t hold.
In total, 43% of respondents affirm that they do not pool their incomes but separate expenses. In 14% of cases, one of the spouses takes charge of all common expenses.
The survey indicates that 60% of women declare having a lower salary than their spouse. One-third (30%) of Quebec women say they do not have sufficient income to save for retirement, compared to 20% of men.
However, Hélène Belleau points out that the couple does not balance these income gaps. "And it's even worse in terms of savings, as barely 30% of respondents try to balance long-term savings between them by making investments for each," she adds. In four out of ten couples, each saves separately, while in 11% of cases, investments are all in the name of one spouse.
She is also concerned to see that in half of the couples with children, each spouse saves independently of the other. "It is during these years that women's incomes tend to decrease because they take maternity leave and their unpaid tasks increase," she recalls. This can have major consequences on their ability to save for retirement.
• 60% of women declare having a lower salary than their spouse.
• 43% of respondents affirm that they do not pool their incomes but separate expenses.
Source: Léger, for the CSF. Study on retirement incomes of Quebecers.
Serving Individual Interests
Hélène Belleau contributes to the CSF survey project as a researcher. She envisions ways in which CSF members could help reduce gender inequalities in retirement savings. She believes they should not hesitate to address financial management and savings issues openly with their clients living in couple.
The CSF confirms that certain ethical and especially ethical aspects should lead advisers to behave as Ms. Belleau suggests. "It's certain that advisers have a role to play in reducing gender inequalities in savings," believes Me Geneviève Beauvais, head of quality and compliance practices at CSF. This aligns with some ethical obligations such as knowing the client, acting in the client's interest, and the duty to inform.
Beyond these obligations, it also concerns CSF members’ ethics. Geneviève Beauvais believes that a first meeting with a couple should serve to establish the financial situation but also to demonstrate the differentiated consequences for both spouses of income and savings management modes within the couple.
Me Beauvais notes that advisers are more likely to talk about risks in the event of death but hesitate to address the effects of separation or divorce or the sharing of expenses. These are sensitive subjects that couples are not fond of, but are crucial in retirement savings management.
• Nearly one in three Quebec women (30%) has not begun planning for retirement and declares not having sufficient income for it, compared to one in five (20%) men in the same situation.
• The risk tolerance of women peaks at 2.7 on a scale of 5, compared to 3.2 for men.
Source : Léger, pour la Chambre de la sécurité financière. Étude sur les revenus à la retraite des Québécoises et Québécois.
Subsequent meetings should be conducted individually with each member of the couple. "Both people must be engaged in their savings process," indicates Me Beauvais. "When we always meet people as a couple, it happens that one of the two—often the one with the smaller income—loses interest in the process and lets the other handle it."
Individual meetings are also important because the two spouses do not necessarily have the same profile, risk tolerance, or values. The Léger study indicates, for example, that the average risk tolerance of women peaks at 2.7 on a scale of 5, compared to 3.2 for men. This will have a major impact on the performance of their long-term portfolio.
However, the advisor's role remains to serve the interests of each of their clients well. To help them achieve this, the InfoDéonto toolkit offers the guide "Helping clients manage their finances," which illustrates cases where special vigilance must be exercised.
Article by Jean-François Venne, published in the Spring 2024 edition of CSF+ magazine (French).