RBC poll reveals shared financial anxieties as millennials join gen x in middle age
As Millennials enter their 40s and join Generation X in middle age, an RBC Financial Independence Poll highlights their growing financial anxieties and the significant focus on their financial future.
This annual survey, capturing responses from 2,000 Canadians aged 18 and above, reveals that Millennials, now aged between 27 to 42, are increasingly worried about managing their day-to-day expenses while saving for the future.
The poll found that 75 percent of Millennials are concerned about their cash flow, with 85 percent anxious about balancing current expenses against long-term savings. This concern is slightly less pronounced in Gen X, aged 43 to 58, where 70 percent worry about cash flow and 82 percent about balancing finances for today and tomorrow.
Both generations share a common goal of achieving financial independence, which a majority defines as being debt-free. For Millennials and Gen X, this is indicated by 56 percent and 69 percent, respectively.
Investment emerges as a key strategy for building savings among these groups. Less than a quarter of both generations have actively invested in the past year, with a shared understanding of the importance of investing whenever possible.
Craig Bannon, RBC's director of Regional Financial Planning Support, emphasizes the importance of staying focused on mid to long-term goals despite market fluctuations.
The survey also sheds light on the investment preferences of Millennials and Gen X, with stocks, pension plans, mutual funds, GICs or term deposits, and ETFs being the preferred vehicles.
Furthermore, a significant portion of Millennials (49 percent) and Gen Xers (40 percent) express willingness to pay fees for the potential of higher returns, underscoring a desire for effective investment strategies that can enhance their financial independence.