Central 1 Credit Union: Ontario Residents Confident of Personal Finances, But Worry About Economy, Omnibus Survey Shows

MISSISSAUGA, ONTARIO--(allCUnews.com - Jan. 13, 2009) - Almost 60 per cent of Ontario residents are in a positive mood about their own personal financial situation, but 48 per cent believe general economic conditions will worsen in 2009, according to a new survey for Central 1 Credit Union.

"Concerns about the economy are leading people to reduce spending, pay down debts and increase savings," said Don Rolfe, president and chief executive officer of Central 1.

"More than 75 per cent of Ontario residents are concerned about maintaining their standard of living and 70 per cent say the slowing economy has already had an impact on their personal financial decisions."

Concerns about the economy have increased since September when 39 per cent in Ontario felt the economy was likely to decline.

Central 1's Market Conditions Impact Study was conducted by Ipsos Reid from Nov. 17 to 24. The online survey of 3,139 residents in B.C., Ontario and Newfoundland-Labrador involved members of the Ipsos I-Say Online Panel.

"Central 1 wanted information about how the current market turmoil and economic downturn are affecting consumer behaviour," Rolfe said. "We want to help credit unions understand what their members are feeling so they can continue to meet their needs."

About half of Ontario residents say their 2008 RRSP contributions will be the same as what they contributed in 2007. As well, the same percentage said the economy will not lead them to change the level of risk for their RRSP investments, but a quarter said they will seek lower-risk investments.

More that half of Ontario residents say they are familiar with Tax Free Savings Accounts (TFSA) and 40 per cent plan to open an account, however, an equal number are unlikely to do so. The vast majority of those who plan to make a TFSA contribution - 70 per cent - say they will also make an RRSP contribution.

Ontarians remain confident that Canada's financial system is stable.

Only 44 per cent of Ontario residents knew that the deposit protection limit was $100,000 for credit union accounts.

About Central 1:

Central 1 Credit Union is the central banking facility and trade association for its nearly 200 member credit unions in B.C., Ontario and Newfoundland and Labrador. From offices in Vancouver, B.C., and Mississauga, Ont., nearly 500 employees provide a wide range of services, including payments settlement, liquidity management, Internet and trade association functions.

For more information, please contact

Central 1 Credit Union
Art Chamberlain
Media Relations Manager
(905) 629-5534 or 1-800-661-6813 x 534
Email: achamberlain@central1.com