A third of Canadians are lacking financial confidence

With cost-of-living woes, recession concerns and ongoing international trade negotiations, it’s no wonder the economic future isn’t all that inspiring for some Canadians. According to a new Co-operators survey, only one-third of Canadians feel optimistic about their financial future.

For Gen Z and Millennials, that share drops to 28% and 26%, respectively.

"Canadians are seeking clarity amid the noise," Jessica Baker, Co-operators executive vice-president and chief retail officer, said in a statement. "Our research shows a growing confidence gap, especially among younger Canadians, but also proves that having a trusted advisor can change that. Human connection and tailored support are what help turn uncertainty into progress."

"We're seeing a generation that's hungry for support but unsure if they even qualify for financial advice. You do. Everyone does.”

What’s shaping the financial outlook for canadians?

For many Canadians, confidence in their financial future is being tested by a perfect storm of economic challenges. Inflation is leading the pack, with nearly three-quarters (72%) saying it’s negatively impacting their outlook. Rising housing costs (47%) and an uncertain job market (43%) are also weighing heavily on minds across the country.

Even though half of Canadians are actively investing, more than a quarter (27%) say they simply don’t have the extra money to do so right now.

Sponsored

Smart investing starts here

Build your own investment portfolio with CIBC Investor’s Edge online and mobile trading platform. Enjoy low commissions on trades and special pricing for active traders, students and young investors.

Get started today

The advisor advantage: Why guidance matters

There’s a striking difference in optimism between those who have professional support and those who don’t. Among Canadians who work with a financial advisor, 67% feel optimistic about their financial future. Compare that to just 44% of those going it alone. And when it comes to confidence in making financial decisions, those with an advisor are more than twice as likely to feel very confident.

Advisors aren’t just helping with investment choices, they’re acting as a steady hand during times of economic and global uncertainty. Many Canadians credit their advisor with helping them stay on course through recent volatility.

Still, trust remains a barrier. Nearly half (43%) of Canadians admit they don’t know who to trust for financial advice, and only one in three is currently working with a financial advisor.

Younger generations in particular are feeling vulnerable: Only 26% of Gen Z and 22% of Millennials feel confident they could handle a major, unexpected expense.

Looking back, 58% of Canadians say they wish they had started planning their finances earlier. And it seems that those who have taken that step are seeing results, as more than half (52%) of Canadians who work with a financial advisor believe they’re on track to meet their financial goals, compared to just 26% of those without guidance.