Canadians are starting to feel better about their current financial situation, but there is apprehension about their future and concerns about where the country could be headed in the coming year, according to the 2021 edition of the IG Financial Confidence Index.
The Index, conducted in partnership with Ipsos Canada, found that Canadians' overall financial confidence at the end of the year stands at 57. This represents a 14 per cent increase over the same period in 2020 (50) and up three points since mid-2021.
Canadians concerned about 2022
While almost 60 per cent are feeling good about the economic conditions in their community (versus 47 per cent mid-year) and 60 per cent stated their personal income increased in the last few months, Canadians coast-to-coast reported being concerned about the year ahead.
Just one quarter of respondents feel confident that the Canadian economy will improve and only 22 per cent feel the stock market will build on 2021 gains. Similarly, only 14 per cent believe inflation will abate in 2022 and 12 per cent think housing affordability will get better.
"It's great news that Canadians are feeling a renewed sense of confidence as we close the year," said Damon Murchison, president & CEO, IG Wealth Management. "People are more secure as the economy starts to fully re-open, COVID-19 cases decline and we return to a certain degree of normalcy.
Apprehension about the future remains
"However, we're also seeing apprehension about the future. Inflation and housing affordability are real concerns for many. It's a perfect time to work with an advisor to either revisit or create a holistic financial plan that not only addresses the present, but also helps ensure you're well insulated for what could come."
According to the study, 80 per cent of Canadians who consulted with a financial planning professional over the last year expressed confidence in their short- and long-term financial situations (versus less than 60 per cent who did not consult).
