Oldest Millennials joining Gen X in middle age, weighed down by worries about their finances - RBC Poll

First wave of Millennials now into their 40s, with same anxieties as mid-life Gen Xers
Increasingly worried about balancing today's expenses with saving for tomorrow
Investing to build their savings and willing to pay fees for higher returns

TORONTO, Feb. 8, 2024 /CNW/ - As the first wave of Millennials enters middle age, this generation is growing increasingly anxious about their financial future, according to the annual RBC Financial Independence Poll.

Now aged 27 to 42, Millennials are most worried about their cash flow (75%) and how to balance covering day-to-day expenses with saving for the longer term (85%) and more anxious about their financial future (49%).

Meanwhile, Gen X (aged 43 to 58) – the group which makes up the largest portion of Canada's middle-aged population – shares similar worries about cash flow (70%), paying for today while saving for tomorrow (82%) and what the future holds for their finances (54%).

Both generations are also keenly focused on making the most of the money they have, to become "financially independent". Majority of Millennials and Gen X define independence as being "debt-free" (56% and 69% respectively), while four-in-10 say it's "having money to invest" (40% and 38%). Over the past year, less than a quarter of both generations have put money toward building an investment portfolio (23% Millennials, 21% Gen X).

Importance of investing what you can, when you can
"We know day-to-day market fluctuations can cause anxiety for investors – but we also know how important it is to remain focused on your mid to long term goals and invest what you can, when you can," explained Craig Bannon, director, Regional Financial Planning Support, RBC. "We want to help Canadians move past any reluctance they may have and begin investing again – or get started investing – so they can grow their savings. Otherwise, it's going to be hard for them to achieve the financial goals they've set for themselves."

In their responses to the RBC survey, Millennials and Gen X called out a number of financial goals they want their investments to help them achieve, including:

• Retire comfortably (46% and 56% respectively)
• Build a safety net (45% and 44%)
• Build wealth (42% and 34%)
• Provide family protection/safety (34% and 23%)

They also indicated they are choosing to invest in a wide range of options, including:

• Stocks (25% Millennials, 21% Gen X)
• Pension plans (25% and 26%)
• Mutual funds (24% and 34%)
• GICs or term deposits (18% and 22%)
• ETFs (14% and 11%)

In addition, almost half (49%) of Millennials and 40% of Gen Xers reported they are willing to pay fees for the opportunity to gain a better return on their investments.

A better return on investments means a better return on life
"What we're telling our clients is that a better return on investments ultimately means a better return on life. Our proven track record of performance, after fees, can help you achieve what matters most to you," said Bannon. "Our advisors will work with you to determine an investment strategy that matches your goals, to help you and those you care for live the way you want."

Advice from RBC is readily available through MyAdvisor – a digital advice platform which has now connected more than 4 million Canadians to their personalized plan, with the ability to adjust those plans in real time and connect with an advisor via video chat, online or in person. Also, anyone can freely access RBC's comprehensive My Money Matters online advice and resources hub. In addition, through February and March, key RBC investment businesses are offering incentives to help Canadians get started – or re-inspired – to invest.

For more information, including Disclaimers, please check out www.rbc.com/return-on-life.

2024 RBC Financial Independence Poll
Fast Factsː Millennials, GenX and National Responses

RESPONSE	Millennials (aged 27-42)	Gen X (aged 43-58)	National (aged 18+)
Worried about cash flow	75 %	70 %	64 %
Money concerns about today vs. tomorrow	85 %	82 %	77 %
More anxious about financial future	49 %	54 %	48 %
Financial independence is being debt- free	56 %	69 %	67 %
Financial independence is having $ to invest	40 %	38 %	37 %
Investment goal: Retiring comfortably	46 %	56 %	50 %
Investing goal: Building a safety net	45 %	44 %	44 %
Investment goal: Building wealth	42 %	34 %	37 %
Investment goal: Providing family protection	34 %	23 %	25 %
Willing to pay fees for higher returns	49 %	40 %	44 %

2024 RBC Canadian Financial Independence Poll
Fast Factsː National and Regional Responses (All respondents – Canadians aged 18+)

RESPONSE	CAN	BC	AB	SK / MB	ON	QC	AC
Worried about cash flow	64 %	58 %	64 %	63 %	72 %	55 %	66 %
Money concerns about today vs. tomorrow	77 %	65 %	71 %	75 %	81 %	79 %	77 %
More anxious about financial future	48 %	48 %	48 %	54 %	49 %	42 %	57 %
Financial independence is being debt- free	67 %	75 %	76 %	72 %	60 %	68 %	75 %
Financial independence is having money to invest	37 %	43 %	38 %	39 %	41 %	27 %	32 %
Investment goal: Retiring comfortably	50 %	55 %	46 %	57 %	50 %	46 %	58 %
Investing goal: Building safety net	44 %	45 %	44 %	44 %	44 %	47 %	37 %
Investment goal: Building wealth	37 %	43 %	35 %	41 %	48 %	18 %	26 %
Investment goal: Providing family protection	25 %	22 %	24 %	22 %	28 %	23 %	25 %
Willing to pay fees for higher returns	44 %	39 %	39 %	47 %	49 %	38 %	46 %

Disclaimer
This is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. The information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

About the 2024 RBC Financial Independence Poll
The 33rd annual RBC Financial Independence Poll was conducted by Ipsos through online interviews with 2,000 Canadians aged 18+. Data was collected September 25 to October 2, 2023.Quota sampling and weighting was employed in order to balance demographics and ensure that the sample's composition reflects that of the actual population of Canadians, according to Census data. The precision of online polls is measured using credibility interval. In this case, the results are accurate to within ± 2.5 percentage points, 19 times out of 20, of what the results would have been had the entire population of adults in Canada been surveyed. Credibility intervals will be wider for smaller subsets of the population. Where appropriate, attitudes and opinions are tracked back to previous years' polls.

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 94,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 17 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.

We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/community-social-impact.

About RBC and our unique MyAdvisor personalized planning support
MyAdvisor – a digital advice platform only available at RBC – has now connected over 4 million Canadians to their personalized plan and the ability to adjust those plans in real time. Complementing RBC's extensive Financial Advice and Planning services, MyAdvisor offers a hybrid approach, so you don't have to choose between digital or human – you get both. Along with 24/7 digital access to your plan, cash flow, net worth and goals, you receive insights, real-time visuals and forecasts to help stay on top of your money and reach your goals. MyAdvisor also connects you to an RBC advisor in your community, via live video, phone or in-person within a branch. Through interactive scenario planning, you can see the potential future impact of today's money decisions on tomorrow's outcome. Whether you're planning for retirement, saving for your first home, or somewhere in between, we can help. For more information, please check out MyAdvisor.

SOURCE RBC Royal Bank

Media contact: Kathy Bevan, RBC Corporate Communications, [email protected], 647-618-2287