The impact inflation continues to have on the lives of Canadians has them feeling unsettled about their day-to-day spending. In addition, it is impacting consumers’ saving options and future financial security, according to the RBC 2023 Financial Flexibility Poll.
Key takeaways include
- 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
“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. Many respondents also expressed serious concerns about the effect inflation could have on their financial future.
RBC 2023 Financial Flexibility Poll
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%). Meantime, some 39% worry it will take longer to retire.
And finally, 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. The majority say a recession would be tougher on everyone today than it was in 2008/2009 (71%). Some 70% expect it would negatively impact their own finances. 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,” added Bannon. “Any of our advisers 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 |
77 % |
77 % |
79 % |
81 % |
78 % |
71 % |
80 % |
|
If inflation continues into 2024, I’m |
67 % |
65 % |
73 % |
73 % |
66 % |
62 % |
73 % |
|
If inflation continues into 2024, I’m |
62 % |
57 % |
68 % |
67 % |
63 % |
59 % |
68 % |
|
If inflation continues into 2024, I’m |
59 % |
55 % |
66 % |
62 % |
60 % |
55 % |
67 % |
|
Uncertainty is the new normal |
59 % |
62 % |
57 % |
63 % |
62 % |
50 % |
69 % |
|
I wasn’t ready for the impact of |
59 % |
65 % |
65 % |
57 % |
58 % |
55 % |
56 % |
|
I didn’t plan early enough for |
58 % |
58 % |
60 % |
58 % |
57 % |
59 % |
58 % |
|
I have never been more stressed |
48 % |
50 % |
49 % |
42 % |
50 % |
45 % |
53 % |
|
I have decreased my overall |
43 % |
46 % |
48 % |
46 % |
44 % |
36 % |
51 % |
|
I am investing less so I can put |
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 |
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 |
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 |
63 % |
59 % |
73 % |
66 % |
64 % |
59 % |
67 % |
|
A recession will take place this |
63 % |
61 % |
67 % |
62 % |
64 % |
57 % |
68 % |
|
Inflation and retirement: |
|||||||
|
If inflation continues into 2024, I |
21 % |
20 % |
19 % |
23 % |
21 % |
21 % |
24 % |
|
If inflation continues into 2024, I |
39 % |
40 % |
49 % |
44 % |
40 % |
31 % |
41 % |
|
Potential recession: |
|||||||
|
A recession will be tougher on |
71 % |
67 % |
81 % |
77 % |
72 % |
63 % |
75 % |
|
A recession would negatively |
70 % |
72 % |
72 % |
73 % |
70 % |
63 % |
74 % |
|
I’m too concerned about covering |
53 % |
54 % |
57 % |
56 % |
52 % |
44 % |
67 % |
