Nearly one-quarter of young Canadians have stopped saving for tomorrow
 |
 |
Adults 35-54 wish they could ‘tell their younger self’ to save/invest more: Bromwich+Smith and Advisorsavvy
TORONTO, June 27, 2022 – Canadians, who have lived through a series of financial crises since 2000 (9/11, the 2008 financial collapse, the Covid-19 pandemic) are less than optimistic about their financial stability according to a new economic survey.
Nearly one-quarter of young Canadians (23%) surveyed said they do not see the point of saving/investing in this economic environment. The Economic Future Survey, the second in a series of economic studies by Bromwich+Smith and Advisorsavvy, finds young people are cynical about their economic futures.
Significantly, 30 per cent of Canadians aged 18-34 are feeling they will need to rely on their own children for financial support when they get older. Additionally, two thirds of young adults worry they will not be able to leave a financial legacy for their children. Also, nearly two thirds of young Canadians (63%) feel they would not be able to afford long-term healthcare if needed, leading the country.
Canadians 35-54 have their own misgivings, with nearly eight-in-10, wishing they could go back and tell their younger selves to be more proactive in saving and investing.
“Despite some financial fatigue, there were some very heartening findings,” said Solomon Amos, Advisorsavvy founder. “ Nearly half of all Canadians across all ages feel they have a strong saving and investing strategy. And half of younger Canadians acknowledge now is a great time to make investments”
|
My Economic Future |
Total |
Canadians 18-34 |
Canadians 35-54 |
Canadians 55+ |
|
I do not see the point of saving/investing in this economic environment |
22% |
23% |
20% |
23% |
|
I would not be able to afford long-term healthcare if I needed it |
57% |
63% |
60% |
54%
|
|
I will need to rely on my children for financial support when I get older |
18% |
30% |
18% |
15% |
|
I worry I will never be able to pay off my debt (loans, lines of credit, credit cards) |
29% |
32% |
35% |
25% |
|
I worry I will not be able to leave a financial legacy for my children |
50% |
66% |
59% |
43% |
|
I wish I could go back and tell my younger self to be more proactive in saving/investing |
70% |
62% |
77% |
71% |
|
I feel I have a strong saving/investing strategy |
48% |
47% |
44% |
51% |
|
It’s a great time to make investments now |
42% |
48% |
49% |
36% |
“People seem to be worrying they will never be able to pay off their debt such as loans, lines of credit, and credit cards,” said Laurie Campbell, director of client financial wellness at Bromwich + Smith.
“But as with investment, there is time, and they are not alone. It is critical that Canadians realize that, especially during these extraordinary times, an investment advisor or a licenced insolvency trustee can help rebuild a person’s financial life.”
Investing habits
Over the last month, when asked whether they have been able to save or invest their money, 55 per cent of all Canadians said yes and 45 per cent said no. However, one-in-five had to dip into their savings, investments, or nest eggs (including things like RRSPs, TFSAs, savings, and investment accounts).
|
Investing habits of Canadians *Over the last month |
Total |
Canadians 18-34 |
Canadians 35-54 |
Canadians 55+ |
|
Sold/Cashed in Investments |
19% |
15% |
16% |
22% |
|
Made/Increased Investments |
28% |
35% |
34% |
21% |
|
Dipped into my “nest egg”/emergency fund |
23% |
22% |
28% |
21% |
|
Added to my “nest egg”/emergency fund |
15% |
19% |
17% |
12% |
|
Cancelled automatic bill payments |
7% |
11% |
8% |
4% |
|
Talked to someone at a financial institution about my finances |
22% |
17% |
19% |
25% |
-30-
About the Economic Future Survey
From June 9 to June 12, 2022, an online survey was conducted among a representative sample of 1,519 Canadians who are members of the Angus Reid Forum. For comparison purposes, the sample plan would carry a margin of error of +/- 2.5 percentage points, 19 times out of 20. Discrepancies in or between totals are due to rounding.
About Bromwich+Smith
At Bromwich+Smith, our dedicated team of Licensed Insolvency Trustees and Debt Relief Specialists are committed to rebuilding our clients’ worth, while helping relieve the overwhelming financial and emotional burden they are experiencing. Beyond our clients’ financial wellbeing, Bromwich+Smith strives to restore the personal wellbeing and self-confidence of every client. Whether it’s through a consumer proposal, bankruptcy, counselling or budgeting, our clients trust us to work with them to find customized solutions to make them whole again. With offices in BC, Alberta, Saskatchewan, Manitoba, Ontario and New Brunswick, Bromwich+Smith helps thousands of Canadians rebuild their worth every year.
Bromwich+Smith's Debt Relief Specialists are available for a free, confidential, no-obligation initial consultation by phone at 1-855-884-9243 or via www.bromwichandsmith.com.
About Advisorsavvy
Advisorsavvy is a free service that helps consumers find, compare and rate local investment, financial and insurance professionals in good standing through a knowledge base of online feedback and reviews.
Advisorsavvy helps Canadian consumers confidently connect with great financial advisors and offers free tools and calculators to help answer people’s retirement planning questions.