Newcomers’ Financial Knowledge and Saving Participation in Canada: A Social Equity Gap Analysis

Using the 2019 Canadian Financial Capability Survey (CFCS), this study examines whether social equity gaps persist in financial knowledge and retirement savings participation between newcomers and those born in Canada. Compared to well-established immigrants and their Canadian-born counterparts, the results suggest that newcomers have significantly lower levels of financial knowledge and are less likely to participate in registered retirement savings plans. To catalyze actions for better financial outcomes for newcomers in Canada, the Financial Consumer Agency of Canada could consider establishing a Financial Literacy Working Group for Newcomers (like the one for Indigenous Peoples). Furthermore, to reduce the information gap, Immigration, Refugees, and Citizenship Canada could add a “Financial Education Courses” category box on the settlement services Canada.ca webpage, which would help newcomers easily filter and find settlement organizations offering financial literacy services.