Rising Costs Fueling Financial Insecurity Among Canadians, Reveals RBC Survey

36

A recent survey by RBC underscores an escalating financial insecurity for many Canadians as their diminishing savings start to jeopardize their future monetary steadiness. RBC’s Director of Regional Financial Planning Support, Craig Bannon, remarked that financial uncertainty has become the standard for a majority of individuals, with nearly half reporting unprecedented stress over monetary concerns.

The survey revealed that 81% of the participants in Saskatchewan wished to increase their savings, but escalating costs hindered their ability. The sentiment was overwhelming in Saskatchewan and Manitoba, leading the nation in this sense, significantly higher than the national average of 77%.

Follow us on Google News! ✔️


Saskatchewan also displayed heightened concern over inflation, with 73% of respondents expressing anxiety about not having sufficient funds to accommodate unforeseen expenses if inflation continues beyond 2024.

Jasmin Brown, a partner and insolvency specialist at BDO Debt Solutions, has observed a sizable influx of individuals exploring options to alleviate their debts since July. Business, she suggests, will likely remain robust for a while, given the trifecta of high inflation, increasing living costs, and growing affordability issues.

Brown observes the mental strain due to financial insecurity in Saskatoon. Many find navigating the paperwork tied to these issues overwhelming, but Brown assures there’s help available for those who need it.

Both Brown and Bannon recommend starting with a solid budget and a financial plan. They encourage individuals to either seek assistance from a financial planner or take an in-depth look at their finances to gain a solid understanding of their financial trajectory.

Brown also highlighted challenges like mortgage renewals linked to interest rate spikes and collection efforts by private creditors that are restricting Canadians’ ability to settle their debts. She added the Canada Revenue Agency’s increased pursuit of smaller debts is escalating the financial stress.

With no immediate resolution in sight, Brown assumes business will remain strong. “Multiple factors contribute to financial hardship. Until these factors are controlled—and even sometime after—I anticipate continuing to see a high volume of individuals seeking help,” Brown said.

Alarmingly, Bannon highlighted that over a third of Canadians lack an emergency fund, further straining their financial adaptability. Nearly a fourth of respondents in Saskatchewan predicted they would need to un-retire if inflation persists into the upcoming year.

The survey, sponsored by RBC, included 1,508 Canadian adults and took place online from June 20 to June 23. Due to the nature of online surveys, which not representing a truly random sample, a margin of error could not be determined.