Repaying debt is the #1 financial priority for Canadians in 2025: CIBC Poll

TORONTO, Dec. 30, 2024 /CNW/ - CIBC's annual Financial Priorities poll finds that paying down or eliminating debt remains the top financial priority among Canadians (17 per cent), followed by keeping up with bill payments (16 per cent).

The poll also found that inflation/rising costs of household goods (66 per cent) and high interest rates (28 per cent) remain the top financial concerns for Canadians. While 65 per cent of Canadians are worried about the possibility of a recession, over half feel prepared to weather an unexpected financial event or hardship (59 per cent) and most feel their financial situation is secure enough to withstand a recession (53 per cent).

"Financial priorities are shaped both by ambitions and by the economic environment – and we're seeing Canadians adapt to the current environment by learning new strategies, such as creating a budget or reducing spending, to help them stay on track," said Carissa Lucreziano, Vice-President, CIBC Financial Planning and Advice. "Prioritizing savings when costs are on the rise is challenging, but gaining insight from an advisor can empower Canadians with tailored, personalized advice and solutions to help them reach their financial goals."

Despite challenges, Canadians are feeling a sense of optimism for the upcoming year, with 76 per cent expressing confidence in achieving their 2025 goals. 64 per cent of Canadians maintain a positive outlook on their current financial situation, with only 28 per cent having taken on more debt in the past 12 months.

Additional findings from the annual Financial Priorities poll: 

• Top reasons for taking on more debt include increased cost of living (44 per cent), day-to-day expenses beyond monthly income (29 per cent), unexpected financial emergencies (21 per cent), new vehicle (16 per cent), and loss of income (14 per cent). 
• Among those currently employed, 54 per cent are concerned about their job security given the present economic environment. 
• 24 per cent say advice to help manage the cost of living would help them feel more prepared for unexpected financial hardships. 

Tools and support

In addition to expert, personalized advice, CIBC also offers clients the following online tools to help manage their everyday expenses and overall finances:

• Budget Calculator, offers a clear picture of your monthly cash flow to help make informed financial decisions.
• CIBC Smart Planner, an intuitive goal planning tool that makes it easy for you to set, track and reach your financial goals.
• CIBC Insights, offers tips and proactive alerts about everyday spending to make it easier for you to manage your money and stay on track to achieving your financial goals.

Disclaimer

The findings are from an Ipsos poll conducted between November 27 and December 2, 2024, on behalf of CIBC. For this survey, a sample of 1,500 Canadians aged 18+ were interviewed online. Sample was sourced from the Ipsos panel. Weighting was employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±3.1 percentage points, 19 times out of 20, had all Canadians been polled. The credibility interval will be wider among subsets of the population.

About CIBC

CIBC is a leading North American financial institution with 14 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets, 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/ca/media-centre

SOURCE CIBC

For further information: Beth McKay, [email protected] or 416-552-1391