Biggest drops seen in Ontario, and Manitoba and Saskatchewan
TORONTO, July 14, 2016 /CNW/ - Far fewer Millennial and Generation X Canadians are confident they'll meet their financial goals than they were just six months ago, finds the latest CIBC (TSX: CM) (NYSE: CM) Quarterly Financial Confidence Poll. After a sharp 12-percentage-point drop for both age groups, only 72 per cent of Millennials and 66 per cent of Gen Xers now say they will be able to attain their financial goals in the next 12 months.
For Baby Boomers, however, financial confidence has edged up three percentage points, with 82 per cent now confident they will meet their goals.
"We had a very gloomy start to 2016, with a reeling loonie and a soft economy and jobs market, and much of that sentiment continues to weigh on confidence," says Sarah Widmeyer, Managing Director and Head, Wealth Strategies Group, CIBC. "Our poll also reveals the stress of everyday life for Millennials and Gen Xers - going to school, working, paying your household bills, trying to save for a house, or taking care of your family. Combined with a string of gloomy economic news no wonder this cohort is feeling less certain they'll achieve their financial goals."
Key poll findings include:
Ms. Widmeyer notes that experience in riding out market and economic cycles can mean a lot in maintaining confidence that you will achieve your goals.
"While macro events, like Brexit, can spark fear and gloom in the markets, these are things beyond our control," she says. "What you can control is your personal finances and how you manage them. The key is to set and prioritize realistic short- and long-term goals, and take concrete steps each month to achieve them. When you have the right plan, then periodic market noise becomes just that, noise, that really shouldn't change your financial priorities."
Feelings about personal finances today closely tied to future outlook
The poll also asked Canadians how they feel about their personal financial situation today. The findings were similar to their financial confidence outlook: Only 59 per cent of Millennials and even fewer (57 per cent) of Gen Xers feel positive about their finances, compared to 78 per cent of Baby Boomers, who are feeling the most optimistic.
"When you feel negative about the status of your finances, you should sit down and talk to someone who can help you assess your situation, give advice and boost your confidence," says Ms. Widmeyer. "There's always something that can be done."
Mid-year is a good time to sit down and re-evaluate your personal financial situation, she adds.
"If you have a plan, take a look to see if it is still realistic and whether changes in the market require you to make adjustments to your expectations, timeframe or investment choices," says Ms. Widmeyer.
Four tips to help boost your financial confidence
Five Tips for Financial Fitness
KEY POLL FINDINGS:
Confidence: Percentage of Canadians who feel confident about meeting their financial goals over the next 12 months, by age:
December |
March 2016 |
June 2016 |
Percentage point change |
|
All Canadians |
80% |
73% |
73% |
-7 pp |
Millennials (18-34 years) |
84% |
75% |
72% |
-12 pp |
Generation X (35-54 years) |
78% |
67% |
66% |
-12 pp |
Baby Boomers |
79% |
78% |
82% |
+3 pp |
Confidence: Percentage of Canadians who feel confident about meeting their financial goals over the next 12 months, by region:
December |
March 2016 |
June 2016 |
Percentage point change |
|
All Canadians |
80% |
73% |
73% |
-7 pp |
British Columbia |
82% |
74% |
79% |
-3 pp |
Alberta |
72% |
64% |
69% |
-3 pp |
Manitoba/ Saskatchewan |
88% |
75% |
74% |
-14 pp |
Ontario |
80% |
69% |
68% |
-12 pp |
Quebec |
84% |
83% |
80% |
-4 pp |
Atlantic Canada |
69% |
66% |
66% |
-3 pp |
Personal financial situation: Percentage of Canadians who feel positive about their personal financial situation, by age:
December |
March 2016 |
June 2016 |
Percentage point change |
|
All Canadians |
69% |
67% |
65% |
-4 pp |
Millennials (18-34 years) |
69% |
65% |
59% |
-10 pp |
Generation X (35-54 years) |
65% |
62% |
57% |
-8 pp |
Baby Boomers |
74% |
74% |
78% |
+4 pp |
Personal financial situation: Percentage of Canadians who feel positive about their personal financial situation, by region:
December |
March 2016 |
June 2016 |
Percentage point change |
|
All Canadians |
69% |
67% |
65% |
-4 pp |
British Columbia |
71% |
65% |
65% |
-6 pp |
Alberta |
62% |
63% |
59% |
-3 pp |
Manitoba/ Saskatchewan |
78% |
69% |
65% |
-13 pp |
Ontario |
68% |
64% |
63% |
-5 pp |
Quebec |
71% |
76% |
74% |
+3 pp |
Atlantic Canada |
67% |
56% |
55% |
-12 pp |
From June 9-10, 2016, an online survey was conducted among 1,489 randomly selected Canadian adults who are Angus Reid Forum panelists. The margin of error - which measures sampling variability - is +/- 2.5 per cent, 19 times out of 20. The results have been statistically weighted according to education, age, gender and region (and in Quebec language) Census data to ensure a sample representative of the entire adult population of Canada. Discrepancies in or between totals are due to rounding.
About CIBC
CIBC is a leading Canadian-based global financial institution with 11 million personal banking and business clients. Through our three major business units - Retail and Business Banking, Wealth Management and Capital Markets - CIBC offers a full range of products and services through its comprehensive electronic banking network, banking centres and offices across Canada with offices in the United States and around the world. You can find other news releases and information about CIBC in our Media Centre on our corporate website at www.cibc.com.
SOURCE CIBC
Image with caption: "Far fewer Millennials and Gen Xers feel they’ll meet their financial goals, a new CIBC poll finds. (CNW Group/CIBC)". Image available at: http://photos.newswire.ca/images/download/20160714_C2467_PHOTO_EN_734085.jpg
Caroline Van Hasselt, Director, External Communications, 416-784-6699 or [email protected]
About CIBC CIBC is a leading North American financial institution with 13 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers...
Share this article