💵 Financial Flexibility Disappearing for Canadians as Rising Costs Continue to Hammer Savings - RBC Poll
Thursday, 28 September 2023 02:10.AM
- 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. -
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."
SOURCE: RBC Royal Bank
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