Rising costs push 61% of Canadians to reconsider major life plans, survey finds
Spring Financial released its first Spring Clean Your Finances Report on May 23, examining how Canadians approach emergency funds, retirement savings, major life expenses, and travel plans.
According to the report cited by The Canadian Press, 61 percent of Canadians say the rising cost of living is causing them to reconsider major life decisions. This figure climbs to 70 percent for parents with children at home.
Additionally, 44 percent of Canadians do not believe they will be financially secure in retirement.
Spring Financial President and CEO Tyler Thielmann stated, “We support millions of Canadians that need financial support, often for unexpected expenses that simply stretch their bank account too far.”
He said the company is encouraging Canadians to spring clean their finances this season, describing it as a time to pause, assess, and plan for a more secure financial future.
Saving stressors
The report indicates that 41 percent of Canadians are unable to save money each month after covering all necessary expenses.
While 70 percent of Canadians have set aside money for emergencies, 40 percent say they are financially unable to save enough for an emergency or rainy-day fund.
Despite these challenges, 79 percent of Canadians feel confident in their financial knowledge and money management skills.
Vacation reservations
Over half of Canadians (61 percent) plan to reduce vacation or travel spending this summer.
One in five Canadians (20 percent) report having taken on debt to fund a vacation in the past.
Among parents with children at home, 37 percent have borrowed for vacation purposes.
Risky retirement
Just over half (54 percent) of Canadians believe they will be financially secure in retirement.
Millennials (50 percent) and Gen X (52 percent) are the most likely to feel financially unprepared, while Baby Boomers (68 percent) and Gen Z (53 percent) are the most confident about their retirement preparedness.
Parenting pressure
The report shows that parents with kids at home are generally less equipped financially compared to others:
- 60 percent of parents have a budget, compared to 64 percent overall.
- 53 percent can save money monthly, versus 61 percent for non-parents.
- 64 percent have an emergency fund, compared to 72 percent of non-parents.
- 51 percent are able to save monthly for emergencies, compared to 63 percent overall.
Thielmann encouraged Canadians to begin any financial review by assessing their current situation and goals.
“Reviewing your income and expenses, creating a budget, and planning for major expenses—whether that’s travel, buying a home, or building an emergency fund—can help build a strong foundation for your financial future,” she said.
