FP Canada™ 2023 Financial Stress Index finds money remains the leading source of stress for Canadians
- For the sixth year, money remains the top stressor for Canadians (40%), with rising inflation, high gas prices and grocery prices contributing to financial stress
- Nearly half (48%) of Canadians have lost sleep over finances and one-in-three (36%) have experienced mental health challenges
- Canadians who work with a professional financial planner are less prone to money-related stress and financial regrets
TORONTO, June 15, 2023 /CNW/ - As the country continues to battle soaring costs of living, Canadians are losing even more sleep over money this year than last, according to FP Canada's 2023 Financial Stress Index. However, the research also shows that working with a professional financial planner is helping Canadians manage through, while reducing the impact of financial stress.
According to the findings of the 2023 Financial Stress Index, a national survey of 2,000+ Canadians conducted by Leger on behalf of FP Canada, money remains the top source of stress (40%) – even more than personal health (23%), relationships (17%) and work (16%) – for the sixth year. Results from this year's Financial Stress Index also indicate financial-related stress has negatively impacted over half of the Canadian population, with one-in-three (36%) Canadians experiencing mental health challenges such as anxiety or depression related to financial stress. Given this, it's no surprise that more Canadians (48%) are losing sleep over money this year compared to last year (43%).
However, FP Canada's 2023 Financial Stress Index revealed that Canadians who work with a professional financial planner feel significantly more hopeful about their financial future (59%) than those who don't (46%), underscoring the value that financial planning can bring to Canadians in today's challenging economy.
"Canadians continue to struggle with their financial picture, and financial stress can have a significant impact not only on financial well-being, but also on mental health," said Tashia Batstone, President & CEO of FP Canada. "The good news is, this research demonstrates a clear path forward for Canadians. Working with a Certified Financial Planner® professional or Qualified Associate Financial Planner™ professional can help individuals regain control over their finances and reduce stress."
The latest Financial Stress Index findings show that inflation's impact on the costs of goods and services, and elevated gas and grocery prices specifically, are contributing to Canadians' financial stress. As Canadians struggle to afford groceries, gas and other goods and services, nearly half (48%) have less disposable income compared to a year ago, a substantial increase from 2022 (39%).
Further, Canadians say they are struggling to save money. Saving enough for retirement (35%) and saving for a major purchase (32%) are two areas of growing concern. Younger generations are also more likely to feel the pinch, and Canadians aged 18-34 are the most concerned about saving for major purchases (50%).
"The current economic challenges have heightened Canadians' sensitivities surrounding their personal finances, but it does not mean you have to go at it alone," said Meghan MacPherson, a QAFP® professional at Impact Financial Group Inc., in St. Catharines, ON. "With the cost of living on the rise, Canadians should be leaning on professional financial planning advice to alleviate money-related stress."
Encouragingly, FP Canada's 2023 Financial Stress Index shows that many Canadians have taken steps to reduce their financial stress, including tracking expenses (44%), paying down debt (36%) and saving more (34%).
The research also reveals that Canadians who work with a CFP professional or a QAFP professional are less prone to money-related stress, sleep loss, and financial regrets. Even when money is the primary source of stress, over half (55%) of respondents who work with a financial planner said that financial stress has no negative impact on their lives and only two-in-five (38%) said they have lost sleep over financial worries, compared to nearly half of all Canadians (42% and 49%, respectively) who don't have a financial planner.
Despite these advantages, only 36 per cent of Canadians work with some type of financial professional, and even fewer – only 5 per cent – work with a financial planner specifically. This troubling reality underscores a lack of awareness around the role that a CFP professional or a QAFP professional can play in helping Canadians achieve financial well-being.
"The FP Canada Financial Stress Index clearly shows the toll that external factors can take not only on our wallets but also our overall well-being," said Alim Dhanji, a CFP® professional at Assante Financial Management in Vancouver, BC. "Professional financial planners work with their clients to build a sense of financial security by supporting them in taking small, accessible steps – like creating budgets – to regain control over their finances so that they stay on the path to financial well-being and help keep stress at bay."
The FSI is conducted each year for FP Canada by Leger, the largest Canadian-owned market research and analytics company. The 2023 Financial Stress Index was completed between March 29 and April 7, 2023, using Leger's online panel 2,004 Canadian respondents nationwide. For comparative purposes, though, a probability sample of 2,001 respondents have a margin of error of ±2.2%, 19 times out of 20.
Established in 1995, FP Canada is a national not-for-profit education, certification and professional oversight organization working in the public interest. FP Canada is dedicated to championing better financial wellness for all Canadians by leading the advancement of professional financial planning in Canada.
SOURCE FP Canada
For media inquiries, or to arrange media interviews with a CFP professional or QAFP professional please contact: Emily Ellis, [email protected], 905-599-6138
Share this article