- Financial uncertainty is the new normal for the majority
- Almost half have never been more stressed out about money
- Impact of inflation caught many by surprise
TORONTO, Sept. 20, 2023 /CNW/ - The impact inflation continues to have on the lives of Canadians has them feeling unsettled about their day-to-day spending and saving options and their future financial security, according to the RBC 2023 Financial Flexibility Poll.
Three of the harsh financial realities called out by poll respondents:
- Three-quarters (77%) would like to save more but can't because of rising costs
- Almost two-thirds (64%) are concerned about falling behind financially this year
- Almost half (48%) reported they have never been more stressed out about money
"When we add on that more than one-third of Canadians don't have an emergency fund, we're seeing financial flexibility disappearing for many across the country," said Craig Bannon, director, Regional Financial Planning Support, RBC.
Not only does the rising cost of living top the list of today's financial worries for Canadians, but many respondents also expressed serious concerns about the effect inflation could have on their financial future. According to poll findings, if inflation continues into 2024:
- Almost three-quarters (72%) of those with debt are worried about taking on more debt
- The majority are concerned they won't have enough money to cover unexpected costs (67%) or ongoing expenses (62%)
- 39% worry it will take longer to retire
- 21% expect they will need to come out of retirement
The RBC poll found that the impact of a potential recession is also on the minds of Canadians, with the majority saying a recession would be tougher on everyone today than it was in 2008/2009 (71%) and expecting it would negatively impact their own finances (70%). In addition, over half (53%) indicated that they are too concerned about covering current expenses to worry about a recession.
"This is why it's so important to have a financial plan in place – one that gives you the flexibility to adjust along the way, as your needs change," adds Bannon. "Any of our advisors can work with you to set up a financial plan to help you try to stay on track – or get back there – no matter what life throws at you."
Fast Facts: RBC 2023 Financial Flexibility Poll
Selected Findings – National and Regional
RESPONSE | CAN | BC | AB | SK/MB | ON | QC | AC |
Personal finances in general: |
I would like to save more but can't
because of rising costs. | 77 % | 77 % | 79 % | 81 % | 78 % | 71 % | 80 % |
If inflation continues into 2024, I'm
concerned I won't have enough
money to cover unexpected costs. | 67 % | 65 % | 73 % | 73 % | 66 % | 62 % | 73 % |
If inflation continues into 2024, I'm
concerned I won't have enough
money to cover my expenses. | 62 % | 57 % | 68 % | 67 % | 63 % | 59 % | 68 % |
If inflation continues into 2024, I'm
concerned about taking on debt. | 59 % | 55 % | 66 % | 62 % | 60 % | 55 % | 67 % |
Uncertainty is the new normal
when it comes to my finances. | 59 % | 62 % | 57 % | 63 % | 62 % | 50 % | 69 % |
I wasn't ready for the impact of
inflation. | 59 % | 65 % | 65 % | 57 % | 58 % | 55 % | 56 % |
I didn't plan early enough for
rising costs. | 58 % | 58 % | 60 % | 58 % | 57 % | 59 % | 58 % |
I have never been more stressed
out about money. | 48 % | 50 % | 49 % | 42 % | 50 % | 45 % | 53 % |
I have decreased my overall
savings compared to a year ago. | 43 % | 46 % | 48 % | 46 % | 44 % | 36 % | 51 % |
I am investing less so I can put
more into savings. | 40 % | 42 % | 37 % | 38 % | 41 % | 38 % | 40 % |
I don't have an emergency fund. | 38 % | 35 % | 33 % | 37 % | 39 % | 37 % | 45 % |
I regret recent big purchases as it
would have been better to save
the money. | 29 % | 27 % | 25 % | 39 % | 30 % | 29 % | 30 % |
I am most likely to cut back on: |
|
|
|
|
|
|
|
• restaurants/dining out | 53 % | 53 % | 52 % | 55 % | 50 % | 54 % | 60 % |
• entertainment | 49 % | 54 % | 52 % | 53 % | 47 % | 41 % | 65 % |
• travel | 40 % | 42 % | 41 % | 45 % | 39 % | 34 % | 52 % |
Top 5 financial concerns: |
Inflation and the rising cost of
living | 87 % | 84 % | 93 % | 91 % | 86 % | 85 % | 91 % |
Ability to save for the future | 72 % | 71 % | 77 % | 83 % | 70 % | 68 % | 75 % |
Interest rate increases | 69 % | 68 % | 75 % | 74 % | 70 % | 64 % | 76 % |
Falling behind financially this year | 64 % | 61 % | 65 % | 65 % | 64 % | 64 % | 72 % |
Needing to use my savings to
cover my everyday expenses | 63 % | 59 % | 73 % | 66 % | 64 % | 59 % | 67 % |
A recession will take place this
year | 63 % | 61 % | 67 % | 62 % | 64 % | 57 % | 68 % |
Inflation and retirement: |
If inflation continues into 2024, I
am concerned I would need to
come out of retirement. | 21 % | 20 % | 19 % | 23 % | 21 % | 21 % | 24 % |
If inflation continues into 2024, I
am concerned it will take longer to
retire. | 39 % | 40 % | 49 % | 44 % | 40 % | 31 % | 41 % |
Potential recession: |
A recession will be tougher on
Canadians today than it was in
2008/2009. | 71 % | 67 % | 81 % | 77 % | 72 % | 63 % | 75 % |
A recession would negatively
impact my finances. | 70 % | 72 % | 72 % | 73 % | 70 % | 63 % | 74 % |
I'm too concerned about covering
my current expenses to worry
about a recession. | 53 % | 54 % | 57 % | 56 % | 52 % | 44 % | 67 % |
About the RBC 2023 Financial Flexibility Poll
From June 20 to June 23, 2023, an online survey was commissioned by RBC among a representative sample of 1,508 Canadian adults (aged 18+), balanced and weighted on age, gender, region and education according to the latest census data. All respondents were members of the online Angus Reid Forum. For comparison purposes only, a sample of this size would yield a margin of error of ± 2.5 percentage points at a 95% confidence level.
About RBC and our unique MyAdvisor personalized planning support
MyAdvisor – a digital advice platform only available at RBC – has now connected 3.78 million Canadians to their personalized plan and the ability to adjust those plans in real time. Complementing RBC's extensive Financial Advice and Planning services, MyAdvisor offers a hybrid approach, so you don't have to choose between digital or human – you get both. Along with 24/7 digital access to your plan, cash flow, net worth and goals, you receive insights, real-time visuals and forecasts to help stay on top of your money and reach your goals. MyAdvisor also connects you to an RBC advisor in your community, via live video, phone or in-person within a branch. Through interactive scenario planning, you can see the potential future impact of today's money decisions on tomorrow's outcome. Whether you're planning for retirement, saving for your first home, or somewhere in between, we can help. For more information, please check out MyAdvisor.
About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 97,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 17 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.
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SOURCE RBC Royal Bank