An increasing number of Canadians are dipping into their savings to make ends meet, and a significant portion of the population is also likely putting a hold on their retirement savings plans, this according to a recent survey conducted by Ipsos on behalf of Global News.
The poll of 1,000 Canadians found that 81 per cent continue to be concerned about rising everyday costs, while 71 per cent are concerned that interest rates are rising faster than they can adjust.
Concerns about inflation held steady from survey to survey – Ipsos conducted the survey in November 2022, April 2023 and June 2023 – with 81 per cent saying they are concerned that inflation will make everyday things less affordable. They add that “shrinkflation,” where a product’s prices remain the same while size and quantity is reduced, remains a concern for 84 per cent of those surveyed.
Notable for those advising clients, 69 per cent are concerned that economic troubles will impact their retirement plans, while 67 per cent say they are concerned they will need to delay future life plans, including buying a home or starting a family. “While the annual inflation rate has been abating, Canadians’ financial anxieties are not,” say the survey’s researchers. “Canadians’ concerns are wide-ranging and span from their retirement plans in the future to paying for food and gas this week. The cost cutting and re-budgeting measures that Canadians have undertaken to help weather the financial storm are continuing.”
They add that Millennials are under the most economic stress while Boomers are less likely to be concerned about all aspects the surveys covered when compared to all other generations.
Broken down, 25 per cent in June said they have dipped into their personal savings to make ends meet, 14 per cent are using money set aside for retirement for the same reasons, and 13 per cent said they are pausing in their retirement savings efforts altogether.