Interest rates and recessionary fears top list
of economic worries
TORONTO, Dec. 28,
2023 /CNW/ - At a time when higher inflation is
putting a strain on household budgets, this year's priority for
Canadians is paying down debt (13 per cent). The goal of debt
repayment was tied with the goal of saving as much as possible (13
per cent), according to CIBC's annual Financial Priorities
poll. Keeping up with bills (12 per cent) is also high on the list
for 2024.
Inflation (61 per cent) and rising interest rates (28 per cent)
top the combined ranked list of financial concerns for Canadians
this year.
The poll also found that while the majority (67 per cent) of
Canadians agree we are either heading into a recession or already
in one, most (64 per cent) feel financially prepared for the
unexpected and 60 per cent believe their financial situation is
secure enough to withstand a recession.
Overall sentiment towards finances has also remained constant
since last year with 64 per cent of Canadians indicating they feel
positive about their current financial situation and only a quarter
(26 per cent) of people saying they have taken on more debt in the
last 12 months.
"With household budgets under some pressure from higher costs,
it's not surprising that paying down debt is a top priority for
Canadians in the new year," said Carissa
Lucreziano, Vice-President, CIBC Financial Planning and
Advice. "Whether you are confident about meeting your financial
goals in 2024, or have doubts about staying on track, working with
a financial professional can help you implement a plan to help
achieve your ambitions for the coming year and beyond."
Additional findings from the annual Financial Priorities
poll:
- Top reasons for taking on more debt include increased cost of
living (46 per cent), day-to-day expenses beyond monthly income (38
per cent), unexpected financial emergencies (17 per cent), higher
cost of borrowing (14 per cent) and loss of income (10 per
cent).
- 36 per cent said if they won or received $5,000 they would put it towards their
savings.
- 70 per cent of Canadians believe the uncertainty of the current
environment makes it difficult to plan.
- Among those currently employed, 42 per cent are concerned about
their job security given the present economic
environment.
- 21 per cent say advice on strategies on how to offset the
impact of inflation would help them feel more prepared for
unexpected financial hardships.
Tools and support
In addition to expert, personalized advice, CIBC also offers
clients the following online tools to help manage their everyday
expenses and overall finances:
- Budget Calculator, offers a clear picture of your monthly cash
flow to help make informed financial decisions.
- CIBC Smart Planner, an intuitive goal planning tool that makes
it easy for you to set, track and reach your financial goals.
- CIBC Insights, offers tips and proactive alerts about everyday
spending to make it easier for you to manage your money and stay on
track to achieving your financial goals.
Disclaimer
This Maru Public Opinion survey was
undertaken November 7-8, 2023, by the
sample and data experts at Maru/Blue and
involved 1,511 randomly selected Canadian adults who are
Maru Voice
Canada online panelists. The results have been
weighted to match the population, and for comparison purposes, a
probability sample of this size has an estimated margin of error
(which measures sampling variability) of +/- 2.5%, 19 times out of
20.
About CIBC
CIBC is a leading North American financial institution with 14
million personal banking, business, public sector and institutional
clients. Across Personal and Business Banking, Commercial Banking
and Wealth Management, and Capital Markets and Direct Financial
Services businesses, CIBC offers a full range of advice, solutions
and services through its leading digital banking network, and
locations across Canada, in the United States and around the world.
Ongoing news releases and more information about CIBC can be found
at www.cibc.com/ca/media-centre.
SOURCE CIBC