A recent survey conducted by RBC (Royal Bank of Canada) has highlighted that financial uncertainty has become the new norm for many Canadians, primarily due to the persistent impact of inflation on their savings and future financial stability. Inflationary pressures have triggered concerns and challenges across the financial spectrum.
Rising Cost of Living Dominates Concerns
The RBC poll underscores that the escalating cost of living has taken the forefront in the list of worries for Canadians. An overwhelming 77 percent of respondents have indicated that they are unable to save as much money as they desire, reflecting the strain of rising expenses on households. Additionally, nearly half of the respondents acknowledged that they are experiencing heightened stress levels related to their financial situation.
Insufficient Emergency Funds
Craig Bannon, the director of regional financial planning support at RBC, noted a concerning trend, revealing that more than one-third of Canadians lack an emergency fund. This absence of financial preparedness further limits individuals’ flexibility when navigating financial challenges and unexpected expenses.
Concerns About a Potential Recession
The survey also revealed that Canadians are apprehensive about the possibility of an impending recession. A majority of respondents believe that it would be more challenging for everyone to weather an economic downturn today compared to the circumstances during the 2008 financial crisis.
Impact on Debt and Retirement Plans
In light of ongoing inflationary pressures, the poll found that 72 percent of respondents who currently have debt are worried about accumulating more debt. Moreover, 21 percent of respondents expressed concerns about the possibility of postponing their retirement plans due to financial constraints.
Survey Details
The survey, commissioned by RBC, was conducted online and gathered responses from 1,508 Canadian adults between June 20 and 23. It’s important to note that online surveys are not considered truly random samples, and as such, the poll does not have an assigned margin of error.