TORONTO, Dec. 29, 2021 /CNW/ - Almost two years into
the global pandemic, CIBC's annual Financial Priorities poll finds
that debt repayment is the number one goal for Canadians for 2022
(20 per cent), while economic worries are focused on
inflation (66 per cent), followed by uncertainty due to
COVID-19 (36 per cent).
With the rising costs of everyday items top-of-mind for many,
among Canadians who say they took on more debt in 2021, 37 per
cent said it was because expenses exceeded their monthly
income. In the face of these concerns, only a quarter of
respondents (27 per cent) expect their financial situation
will improve next year.
"It's understandable that Canadians are concerned about the
economy in 2022, but what's important is to have their personal
financial house in order, if goods, services and carrying debt are
going to cost more," said Carissa
Lucreziano, Vice-President, CIBC Financial and Investment
Advice. "Although a number of Canadians do not feel their finances
will get better in 2022, most* have not had a planning session with
their financial advisor in the last year. Making that a New Year's
resolution can help Canadians manage their financial expectations –
and any surprises - in 2022."
When asked what financial wellness means to them, 47 per
cent of respondents say living without financial stress, and
also said it was a top descriptor for overall wellness (28 per
cent). Four in ten (41 per cent) feel financial wellness
comes from being able to afford what they need in life, such as
housing, food, or transportation. Half (50 per cent) admit
that they wish they were better at saving, while a similar number
of Canadians agree that they need to get a better handle on their
finances this coming year (49 per cent).
"It is imperative to seek ways to mitigate financial stress, as
it's clearly a key factor in overall wellness. Having a plan to
reach your long term ambitions and a clear understanding of your
monthly cash flow can significantly reduce stress, which is why we
recommend seeking the help of a financial expert who can implement
a plan to alleviate these pressures and get people on track to
achieve their ambitions," added Lucreziano.
Additional findings from the 2021 December Financial
Priorities poll:
- Other top financial priorities for 2022 are growing investments
(16 per cent) and simply keeping up with bills (15 per
cent).
- Common secondary financial goals for 2022 include saving as
much as possible/growing an emergency fund (28 per cent),
avoiding taking on more debt (26 per cent), saving for a
vacation/travel (17 per cent), reducing discretionary
spending (17 per cent), and saving for retirement (16 per
cent).
- 80 per cent of Canadians expect that their financial
goals will remain the same once the pandemic is over.
- When it comes to wellness, work-life balance is also important,
with seven in ten (70 per cent) believing that maintaining a
healthy work-life balance is now more important than ever.
- 40 per cent of homeowners and 31 per cent of
non-homeowners are worried about rising interest rates.
- *70 per cent of respondents have not had a planning
session with their financial advisor in the last year.
Upcoming virtual event
CIBC is hosting free webinars (in English and French) on
January 27th featuring
CIBC Deputy Chief Economist Benjamin
Tal and CIBC Chief Investment Officer Luc de la Durantaye, who will share their
insights about the Canadian and global economies and what it means
for personal finances.
Tools and support
In addition to expert, personalized advice, CIBC also offers
clients the following tools to help manage their everyday expenses
and overall finances:
- Budget Calculator, which offers a clear picture of monthly cash
flow to guide making financial decisions.
- CIBC Goal Planner, an intuitive tool to map out and easily
adjust goals as they evolve over time.
- CIBC Insights, with tips and proactive alerts about everyday
spending to make it easier to manage money and understand how
transactions are tracking toward goals.
Disclaimer
From December 6 to December 7,
2021 an online survey of 1,515 randomly selected Canadian
adults who are Maru Voice
Canada panelists was executed
by Maru/Blue. For comparison purposes, a
probability sample of this size has an estimated margin of error
(which measures sampling variability) of +/- 2.5%, 19 times
out of 20. The results have been weighted by education, age, gender
and region (and in Quebec,
language) to match the population, according to Census data. This
is to ensure the sample is representative of the entire adult
population of Canada. Discrepancies in or between totals are due to
rounding.
About CIBC
CIBC is a leading North American financial institution with 11
million personal banking, business, public sector and institutional
clients. Across Personal and 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/ca/media-centre.
SOURCE CIBC