Canadians are feeling less confident about meetings their financial goals in 2015, finds a new infographic from Rates.ca.
Toronto, ON (PRLeap) January 28, 2015 – Canadians are feeling less confident in their ability to meet their financial goals this year compared to 2014. According to a recent poll by CIBC, only 65 percent of Canadians feel confident they will meet their current financial goals this year, down from 76 percent in 2014.
“Uncertainties regarding the housing market and oil prices might have had an impact on the decrease in Canadians’ confidence. It is important for everyone to plan ahead and take appropriate steps to achieve their financial goals this year," said Daniel Shain, Director of Product, Credit & Insurance at VerticalScope Inc., owner of Rates.ca, a leading online rate comparison site.
Millennials (ages 25-34) are the most optimistic age group; 77 percent feel confident they’ll meet their financial goals (although that’s down from 79 percent in 2014). The least optimistic age group are those nearing retirement; only 58 percent of Canadians 45-54 feel confident they’ll meet their financial goals, down sharply from 77 percent last year.
Debt repayment continues to be the top financial goal for many Canadians. 22 per cent of Canadians said paying down debt is their top financial goal in 2015. With the household debt-to-income ratio near a record high, this is a welcomed sign for the Bank of Canada. Building savings (12 percent), paying bills (10 percent) and budgeting (9 percent), were other top financial goals.
Retirement continues to be a low priority for many Canadians. Only 5 percent of Canadians are planning for their golden years. While the high number of Canadians focused on paying down debt is encouraging, it’s important not to lose sight of long-term goals like retirement.
With only 24 per cent of eligible taxpayers contributing to an RRSP in 2012, according to Stats Canada, there are a number of steps you can take to get started. The easiest and first step is to open an RRSP. When you contribute to an RRSP, your money grows tax-free. The sooner you start contributing, the longer your money will grow.