Financial flexibility disappearing for Canadians as rising costs continue to hammer savings - RBC poll

• Financial uncertainty is the new normal for the majority
• Almost half have never been more stressed out about money
• Impact of inflation caught many by surprise

TORONTO, Sept. 20, 2023 /CNW/ - The impact inflation continues to have on the lives of Canadians has them feeling unsettled about their day-to-day spending and saving options and their future financial security, according to the RBC 2023 Financial Flexibility Poll.

Three of the harsh financial realities called out by poll respondents:

• Three-quarters (77%) would like to save more but can't because of rising costs
• Almost two-thirds (64%) are concerned about falling behind financially this year
• Almost half (48%) reported they have never been more stressed out about money

"When we add on that more than one-third of Canadians don't have an emergency fund, we're seeing financial flexibility disappearing for many across the country," said Craig Bannon, director, Regional Financial Planning Support, RBC.

Not only does the rising cost of living top the list of today's financial worries for Canadians, but many respondents also expressed serious concerns about the effect inflation could have on their financial future. According to poll findings, if inflation continues into 2024:

• Almost three-quarters (72%) of those with debt are worried about taking on more debt
• The majority are concerned they won't have enough money to cover unexpected costs (67%) or ongoing expenses (62%)
• 39% worry it will take longer to retire
• 21% expect they will need to come out of retirement

The RBC poll found that the impact of a potential recession is also on the minds of Canadians, with the majority saying a recession would be tougher on everyone today than it was in 2008/2009 (71%) and expecting it would negatively impact their own finances (70%). In addition, over half (53%) indicated that they are too concerned about covering current expenses to worry about a recession.

"This is why it's so important to have a financial plan in place – one that gives you the flexibility to adjust along the way, as your needs change," adds Bannon. "Any of our advisors can work with you to set up a financial plan to help you try to stay on track – or get back there – no matter what life throws at you."

Fast Facts: RBC 2023 Financial Flexibility Poll
Selected Findings – National and Regional

RESPONSE	CAN	BC	AB	SK/MB	ON	QC	AC
Personal finances in general:
I would like to save more but can't because of rising costs.	77 %	77 %	79 %	81 %	78 %	71 %	80 %
If inflation continues into 2024, I'm concerned I won't have enough money to cover unexpected costs.	67 %	65 %	73 %	73 %	66 %	62 %	73 %
If inflation continues into 2024, I'm concerned I won't have enough money to cover my expenses.	62 %	57 %	68 %	67 %	63 %	59 %	68 %
If inflation continues into 2024, I'm concerned about taking on debt.	59 %	55 %	66 %	62 %	60 %	55 %	67 %
Uncertainty is the new normal when it comes to my finances.	59 %	62 %	57 %	63 %	62 %	50 %	69 %
I wasn't ready for the impact of inflation.	59 %	65 %	65 %	57 %	58 %	55 %	56 %
I didn't plan early enough for rising costs.	58 %	58 %	60 %	58 %	57 %	59 %	58 %
I have never been more stressed out about money.	48 %	50 %	49 %	42 %	50 %	45 %	53 %
I have decreased my overall savings compared to a year ago.	43 %	46 %	48 %	46 %	44 %	36 %	51 %
I am investing less so I can put more into savings.	40 %	42 %	37 %	38 %	41 %	38 %	40 %
I don't have an emergency fund.	38 %	35 %	33 %	37 %	39 %	37 %	45 %
I regret recent big purchases as it would have been better to save the money.	29 %	27 %	25 %	39 %	30 %	29 %	30 %
I am most likely to cut back on:
• restaurants/dining out	53 %	53 %	52 %	55 %	50 %	54 %	60 %
• entertainment	49 %	54 %	52 %	53 %	47 %	41 %	65 %
• travel	40 %	42 %	41 %	45 %	39 %	34 %	52 %
Top 5 financial concerns:
Inflation and the rising cost of living	87 %	84 %	93 %	91 %	86 %	85 %	91 %
Ability to save for the future	72 %	71 %	77 %	83 %	70 %	68 %	75 %
Interest rate increases	69 %	68 %	75 %	74 %	70 %	64 %	76 %
Falling behind financially this year	64 %	61 %	65 %	65 %	64 %	64 %	72 %
Needing to use my savings to cover my everyday expenses	63 %	59 %	73 %	66 %	64 %	59 %	67 %
A recession will take place this year	63 %	61 %	67 %	62 %	64 %	57 %	68 %
Inflation and retirement:
If inflation continues into 2024, I am concerned I would need to come out of retirement.	21 %	20 %	19 %	23 %	21 %	21 %	24 %
If inflation continues into 2024, I am concerned it will take longer to retire.	39 %	40 %	49 %	44 %	40 %	31 %	41 %
Potential recession:
A recession will be tougher on Canadians today than it was in 2008/2009.	71 %	67 %	81 %	77 %	72 %	63 %	75 %
A recession would negatively impact my finances.	70 %	72 %	72 %	73 %	70 %	63 %	74 %
I'm too concerned about covering my current expenses to worry about a recession.	53 %	54 %	57 %	56 %	52 %	44 %	67 %

About the RBC 2023 Financial Flexibility Poll
From June 20 to June 23, 2023, an online survey was commissioned by RBC among a representative sample of 1,508 Canadian adults (aged 18+), balanced and weighted on age, gender, region and education according to the latest census data. All respondents were members of the online Angus Reid Forum. For comparison purposes only, a sample of this size would yield a margin of error of ± 2.5 percentage points at a 95% confidence level.

About RBC and our unique MyAdvisor personalized planning support
MyAdvisor – a digital advice platform only available at RBC – has now connected 3.78 million Canadians to their personalized plan and the ability to adjust those plans in real time. Complementing RBC's extensive Financial Advice and Planning services, MyAdvisor offers a hybrid approach, so you don't have to choose between digital or human – you get both. Along with 24/7 digital access to your plan, cash flow, net worth and goals, you receive insights, real-time visuals and forecasts to help stay on top of your money and reach your goals. MyAdvisor also connects you to an RBC advisor in your community, via live video, phone or in-person within a branch. Through interactive scenario planning, you can see the potential future impact of today's money decisions on tomorrow's outcome. Whether you're planning for retirement, saving for your first home, or somewhere in between, we can help. For more information, please check out MyAdvisor.

About RBC
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SOURCE RBC Royal Bank

Media contact: Kathy Bevan, RBC Corporate Communications, [email protected], 647-618-2287