An annual poll conducted by Nielsen, a global information and measurement company, found that only 65 per cent of Canadians feel that they will meet their financial goals in 2015, over a 10 per cent fall from 2014 and the lowest numbers in almost five years.
According to the study, it is not young Canadians who are not feeling confident with their economy, instead it is those aged 45 and up who feel the least secure in their financial stability.
In fact, Canadians aged 45-54 were among the least confident this year in regards to economic goals, with only 58 per cent feeling confident, a decrease from 77 per cent in the same age group from 2014.
As well as being the least confident about their financial future, 45 to 54 year olds were the least optimistic in regards to their current economic situation, with only 58 per cent of those surveyed feeling content with where they are in terms of economic success.
The study also found that the baby boomers are the least likely to meet with a financial adviser, with barely 40 per cent of those who were surveyed having received any financial council in the previous year.
In addition, of Canadians aged 55 to 64, 61 per cent felt confident about reaching their financial goals, down 10 per cent from 2014.
Despite the shaking faith of the baby-boomers in regards to economic prosperity, young Canadians aged 25 to 44 claimed that 75 per cent of them would meet their long term economic planning a mere one per cent fall from the previous year and the most seemingly stable statistic presented in the study.
Confirming the baby boomers dissatisfaction with finances, another recent survey published by CIBC showed that paying off debt is currently the number one financial priority for all Canadians for the fifth year in a row, with those about to retire even more focused on debt than other Canadians demographics on average.
According to Christina Kramer, Executive Vice President, Retail and Business Banking, CIBC, “We are seeing a real conflict among Canadians close to retirement, who are trying to balance their short term need to reduce debt with the longer term goal to save for the retirement they want. As Canadians approach traditional retirement age it can be a challenge to keep focused on both, and that can impact their overall confidence in their future finances.”
“This decline in confidence among boomers is the most significant we’ve seen in five years,” said Ms. Kramer. “As each year goes by and boomers increasingly focus on debt reduction as an immediate priority, they also get closer to retirement without a long term plan in place that will deliver the retirement they are looking for. Having a financial plan that addresses all economic conditions can help build the personal financial confidence they may be seeking.”
When asked what the best things Canadians can do to prepare for their future, Kramer remarked that, “Meeting with a financial advisor will help you gain a better understanding of your current financial situation, which can lead to a more positive outlook,” Furthermore, Kramer commented, “It is a small investment in terms of time, but it is an important first step in developing a realistic plan to help achieve your personal financial goals.”