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Canadians say they're financially confident, but fret about possible rate hikes, rising costs and inability to save: CIBC poll

Nearly 60 per cent of Canadians say they'd feel "significantly less confident" if interest rates rise

TORONTO, Jan. 15, 2018 /CNW/ - With a new year underway, the majority of Canadians (77 per cent) say they are optimistic about their finances, although nearly three in five acknowledge that they would feel "significantly less" confident if interest rates go up again, the annual CIBC (CM:TSX) (CM:NYSE) Financial Confidence survey finds. Further, 70 per cent expressed concerns about the impact of higher food and utility costs on their finances and their ability to put away money for the future.

"This poll offers a glimpse into the financial psyche of Canadians who say they feel confident about their finances, but are actually very worried about bumps in the year ahead that could derail their goals," says Jennifer Hubbard, Managing Director, Financial Planning and Advice, CIBC. "Given that household debt remains at record highs, it's no surprise that Canadians are concerned about even the slightest change that might affect their finances. The best way to weather uncertainty is to have a solid financial plan in place to help you manage any challenges ahead."

Key poll findings:

  • 77 per cent of Canadians feel confident they'll be able to achieve their 2018 financial goals, with 23 per cent saying they are "very confident" and more than half (54 per cent) feeling only "somewhat confident"
    • Men are more confident than women about their finances, 82 per cent and 72 per cent, respectively
  • 70 per cent also feel either "very positive" (21 per cent) or "somewhat positive" (49 per cent) about their current financial situation
    • Men feel more positive about their finances than women, 75 per cent versus 65 per cent, respectively
  • 59 per cent would feel "significantly less" confident if interest rates go up again
  • 70 per cent worry they're not saving enough
  • 70 per cent say the impact of inflation and rising costs of household goods, such as gas, utilities, groceries and consumer goods, makes them feel less financially confident

Canadians' concerns about saving for the future and managing non-discretionary household costs supports findings from a recent CIBC poll showing more than two-thirds of Canadians need to get a better handle on their finances in 2018, and half regret not paying down more debt while interest rates remained low.

What boosts confidence?

The poll also finds that, of those who are confident, the three top factors boosting their optimism include a rising stock market (29 per cent), minimum wage increases (21 per cent), and moderate economic growth (17 per cent). Interestingly, 37 per cent of men say the rising stock market boosts their confidence, compared to only 21 per cent of women. As well, almost a third (31 per cent) of those aged 18-34 say minimum wage increases are boosting their confidence.

"What's particularly striking is the difference in financial confidence and optimism levels between women and men, which points to the need for a greater understanding on how to narrow the gap," says Ms. Hubbard. "There could be many reasons for this disparity, ranging from pay equity to self-doubt about how to best manage their money."

"The surest way to boost your confidence in times of uncertainty is to work with an expert who can put the current economic climate into focus and develop a plan tailored to meet your needs," she says. "You build confidence over time through knowledge, experience and seeing success take shape when you start achieving your goals."

Three starting points:

  1. Write down your income and expenses – Having a clear picture of your financial situation can help you set achievable short- and long-term goals, and motivate you to take control of your life.
  2. Commit to achieving your goals – Just 16 per cent of Canadians admitted they achieved their financial goal last year. This year, make a plan and stick to it. Automate savings as much as possible.
  3. Get expert advice – No matter what your financial situation is, an expert can always help find ways of improving it.

KEY POLL FINDINGS:

Percentage of Canadians who feel confident about meeting their 2018 financial goals, by region:


2018

2017

2016

National

77 %

80 %

80 %

British Columbia

75 %

82 %

82 %

Alberta

76 %

80 %

72 %

Manitoba/Saskatchewan

79 %

80 %

88 %

Ontario

75 %

77 %

80 %

Quebec

80 %

84 %

84 %

Atlantic Canada

77 %

75 %

69 %

 

Percentage of Canadians who feel confident about meeting their 2018 financial goals, by age:


2018

2017

2016

18-34

76 %

81 %

84 %

35-54

72 %

76 %

78 %

55+

83 %

83 %

79 %

 

Percentage of Canadians who feel positive about their current financial situation, by region:


2018

2017

2016

National

70 %

72 %

69 %

British Columbia

68 %

71 %

71 %

Alberta

64 %

66 %

62 %

Manitoba/Saskatchewan

65 %

70 %

78 %

Ontario

70 %

71 %

68 %

Quebec

76 %

80 %

71 %

Atlantic Canada

64 %

69 %

67 %

 

About the 2018 Financial Confidence poll:

From December 11th to December 12th 2017 an online survey was conducted among 1,524 randomly selected Canadian adults who are Angus Reid Forum panelists. The margin of error—which measures sampling variability—is +/- 2.5%, 19 times out of 20. The results have been statistically weighted according to education, age, gender and region (and in Quebec, language) Census data to ensure a sample representative of the entire adult population of Canada. Discrepancies in or between totals are due to rounding.

About CIBC

CIBC is a leading Canadian-based global financial institution with 11 million personal banking, business, public sector and institutional clients. Across Personal and Small Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada, in the United States and around the world. Ongoing news releases and more information about CIBC can be found at www.cibc.com/en/about-cibc/media-centre.html or by following on LinkedIn (www.linkedin.com/company/cibc), Twitter @CIBC, Facebook (www.facebook.com/CIBC) and Instagram @CIBCNow.

SOURCE CIBC - Consumer Research and Advice

For further information: Jessica Botelho, Public Relations, 416-980-8859 or jessica.botelho@cibc.com
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