Annual poll reveals Canadians' financial outlook is less rosy than past years, reveals split between boomers and younger Canadians on their view of the future
TORONTO, Jan. 5, 2015 /CNW/ - A new CIBC (TSX: CM) (NYSE: CM) poll conducted by Nielsen finds that two-thirds (65 per cent) of Canadians are entering the new year feeling confident they will reach their financial goals, a decline from the same poll last year (76 per cent), and the lowest number in five years. Canadians aged 45 and up accounted for most of the decline, while younger Canadians remained confident about the future.
Key findings of this year's poll include:
The percentage of Canadians who said they feel confident about meeting their current financial goals, over the last five years of the poll:
- Canadians aged 45-54 were among the least confident this year, with only 58 per cent feeling confident about reaching their financial goals, a decrease from 77 per cent in the same age group just last year
- Among Canadians aged 55-64, 61 per cent feel confident about reaching their financial goals, down from 74 per cent last year
- By comparison, 75 per cent of Canadians aged 25-44 said they are confident they will reach their financial goals, relatively unchanged from a year ago (76 per cent)
Another recent poll from CIBC showed that paying down debt is the number one financial priority for Canadians for the fifth year in a row, with those nearing retirement even more focused on debt than Canadians on average.
"We are seeing a real conflict among Canadians close to retirement, who are trying to balance their short term need to reduce debt with the longer term goal to save for the retirement they want," says Christina Kramer, Executive Vice President, Retail and Business Banking, CIBC. "As Canadians approach traditional retirement age it can be a challenge to keep focused on both, and that can impact their overall confidence in their future finances."
"This decline in confidence among boomers is the most significant we've seen in five years," says Ms. Kramer. "As each year goes by and boomers increasingly focus on debt reduction as an immediate priority, they also get closer to retirement without a long term plan in place that will deliver the retirement they are looking for."
"Having a financial plan that addresses all economic conditions can help build the personal financial confidence they may be seeking."
Positivity also on the decline; advice could be the key
The percentage of Canadians who say they feel positive about their current financial situation has also dropped from past years' polls:
As well as being the least confident about their finances, 45-54 year olds were also among the least optimistic, with only 58 per cent feeling positive about their current financial situation.
Interestingly, the poll also found that this same age group were among the least likely to have met with a financial advisor in the past year, with just 40 per cent of 45-54 year olds getting financial advice (compared to 45 per cent of Canadians overall).
"Meeting with a financial advisor will help you gain a better understanding of your current financial situation, which can lead to a more positive outlook," Ms. Kramer comments. "It is a small investment in terms of time, but it is an important first step in developing a realistic plan to help achieve your personal financial goals."
KEY POLL FINDINGS
Percentage of Canadians who are confident they will meet their current financial goals, by region:
Percentage of Canadians who are confident they will meet their current financial goals, by age:
Percentage of Canadians feeling positive about their current financial situation, by region:
Percentage of Canadians feeling positive about their current financial situation, by age:
Each week, Nielsen interviews just over 1000 Canadians through teleVox, the company's national telephone omnibus survey. These results were gathered from a sample of 1,014 Canadians between November 13 and 17, 2014. A sample of this size has a margin of error of +/-3.1%, 19 times out of 20.
CIBC is a leading Canadian-based global financial institution with nearly 11 million personal banking and business clients. Through our three major business units - Retail and Business Banking, Wealth Management and Wholesale Banking - CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada with offices in the United States and around the world. You can find other news releases and information about CIBC in our Media Centre on our corporate website at www.cibc.com.
Caroline Van Hasselt, Director, External Communications, 416-784-6699 or email@example.com