Entering 2015, personal financial confidence takes a hit
A poll conducted by Nielsen finds that two-thirds (65 per cent) of Canadians are entering the new year feeling confident they will reach their financial goals, a decline from the same poll last year (76 per cent), and the lowest number in five years. Canadians aged 45 and up accounted for most of the decline, while younger Canadians remained confident about the future.
- Canadians aged 45-54 were among the least confident this year, with only 58 per cent feeling confident about reaching their financial goals, a decrease from 77 per cent in the same age group just last year
- Among Canadians aged 55-64, 61 per cent feel confident about reaching their financial goals, down from 74 per cent last year
- By comparison, 75 per cent of Canadians aged 25-44 said they are confident they will reach their financial goals, relatively unchanged from a year ago (76 per cent)
Another recent poll from CIBC showed that paying down debt is the number one financial priority for Canadians for the fifth year in a row, with those nearing retirement even more focused on debt than Canadians on average.
"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," says Christina Kramer, Executive Vice President, Retail and Business Banking, CIBC. "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," says 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."