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:
- 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.
- 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.
- 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