Groceries and Gas Top List of Biggest Financial Strains for 2022; PolicyMe survey reveals Canadians' financial outlook

• In 2022, Canadians' top financial priorities are having a sufficient emergency fund (54%), paying down debt (48%) and saving for retirement (40%)
• Canadians' top financial stressors for 2022 include buying groceries (59%), paying for gas & transportation (40%) and paying down their credit card debt (28%)
• 42% admit they were more financially stressed in 2021 compared to the previous year; Albertans were the most likely to be more stressed at 50%, followed by those living in the Prairies (49%)
• Half of Canadians had to withdraw from savings or investments in 2021 to afford unexpected expenses, and one third of Canadians would have one month or less of a cushion to fall back on if they or their partner were to lose their primary source of income
• Despite the financial hardships of recent years, the majority of Canadians (65%) considered themselves to be financially resilient; 45% make regular contributions to savings or investments and, on average, Canadians put 21% of their household income towards savings and investments

TORONTO, Jan. 12, 2022 /CNW/ - A new report released today by digital life insurance innovator PolicyMe, the Canadians + Money 2022 Survey, reveals Canadians' current and future financial outlook. The survey asked Canadians to rank their financial priorities, stressors, and expenses they expect to see increase in 2022. The findings paint a picture of a country concerned about the rising cost of living while at the same time focused on contributing to savings and paying down debt.

As we enter 2022, buying groceries (59%) and paying for gas (48%) are putting the most financial strain on Canadians, while top financial priorities for 2022 include building a sufficient emergency fund (54%) and paying down debt (48%).

Canadians' Financial Stressors & Priorities for 2022
Top Financial Priorities	Top Financial Stressors	Expenses Anticipated to Increase
54% Having a sufficient emergency fund   48% Paying down debt   40% Saving for retirement   29% Saving for travel/vacation   19%  Saving to renovate a home	59% Groceries   40% Gas and transportation   28% Credit card debt payments   24% Rent   15% Mortgage Interest Rates	77% Groceries   66% Gas and transportation   36% Restaurants and dining out   35% Travel expenses   32% Clothing/apparel

"As we enter a new year, we wanted to take a pulse on how Canadian families are feeling about their financial situations, and our findings paint a very mixed picture," says Andrew Ostro, CEO, PolicyMe. "While concerns around inflation, rising interest rates, and housing affordability are causing stress for many families, Canadians have a positive outlook for 2022: they feel in control of their finances, they are saving a high percentage of their income, and they have a strong sense of financial resilience."

Financial Stress is High — But Canadians Feel Resilient

The study revealed 42 per cent of Canadians felt more financially stressed in 2021 compared to the previous year. Households with children felt more financial stress (47%) than those without children (39%). Albertans were most financially stressed (50%), followed by Saskatoon/Manitoba (49%). Last year, half of Canadians (51%) had to pull money from their savings or investments in order to afford unforeseen expenses. Albertans were also most likely to have pulled from their savings or investments (56%), followed by the Prairies (55%).

Despite the financial hardships of recent years, two out of three Canadians (67%) reported feeling in control of their finances with 65 per cent referring to themselves as financially resilient. Forty-five per cent said they regularly contribute to savings/investments, and on average, Canadians put 21 per cent of their household income toward savings and investments.

Those who took the following financial actions in 2021 were more likely than the national average to consider themselves financially resilient:

• Paid off mortgage (89%)
• Made regular contributions to a RESP (84%)
• Made regular contributions to an RRSP or TFSA (78%)
• Consulted with a financial advisor (75%)
• Made a will or updated end-of-life plans (72%)

Taking Steps Towards Financial Resiliency in 2022

The past two years have been extremely challenging, so the fact that many Canadians still feel in control of their finances (67%) and are putting 21 per cent of their income into savings and investments is worth celebrating. Additionally, many Canadians are making regular contributions to their savings (45%), are planning to add to their emergency fund (54%), will continue to pay down debt (48%), and are saving for retirement (40%). Lastly, 47 per cent of Canadian parents are saving for their children's education.

Despite doing a lot to remain financially resilient, 44 per cent of Canadian parents are overlooking one of the most affordable and impactful financial tools at their disposal: life insurance. The survey found that most Canadians (70%) would only have six months or less of a cushion to fall back on if they were to lose their primary source of income, with one in three (32%) having one month or less. Having adequate coverage through life insurance is a key way Canadian families can remain financially resilient in the event of an unexpected passing.

To help ensure that more Canadians are financially resilient, PolicyMe is introducing two new features to their life insurance product:

1. Couples Coverage. A five per cent discount on policies when partners apply for PolicyMe's Couples Coverage together.
2. Child Coverage. A complimentary $10K policy for the children of PolicyMe customers. PolicyMe is the first and only Canadian Life Insurance provider to offer this feature.

For more details on the survey, view the full 2022 Canadians & Money Survey.

About PolicyMe
PolicyMe is a Canadian digital life insurance solution built to make financial protection for families honest, uncomplicated and affordable. PolicyMe makes it easy to get a quote and apply for term life insurance online in 20 minutes or less. Using technology, they've streamlined the traditional insurance process resulting in a fully-underwritten life insurance policy that delivers the same quality protection you deserve but with fewer steps and lower costs. Based in Toronto, Canada, PolicyMe is currently licensed in Ontario, British Columbia, Alberta, Saskatchewan, Manitoba, New Brunswick, Prince Edward Island, Nova Scotia, Yukon Territories, Northwest Territories & Nunavut. For more information, please visit https://www.policyme.com.

About the Survey
These are the findings of a nationally representative study conducted by PolicyMe. The sample is comprised of n=1,501 Canadians who are members of the online Angus Reid Forum, balanced and weighted on age, gender, region and education. The survey was offered in both English and French. For comparison purposes only, a sample of this size would yield a margin of error of +/-2.5 percentage points at a 95% confidence level. The survey was in field December 2-3, 2021.

About the Angus Reid Forum:
The Angus Reid Forum is Canada's most well-known and trusted online public opinion community consisting of engaged residents across the country who answer surveys on topical issues that matter to all Canadians.

SOURCE PolicyMe

Linda North, [email protected], 416-708-8012