- 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
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For more information, please check out MyAdvisor.
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SOURCE RBC Royal Bank