With increasing housing prices, higher interest rates and inflation on the rise, it’s no surprise Canadians are concerned about their personal finances. But a new survey has found younger Canadians are more worried than most.
Canadians under the age of 35 are concerned about almost every aspect of their personal finances from job security to mortgage rates, according to the 2022 TD Wealth Survey, which found surging inflation rates topped the list (87 per cent of respondents), followed closely by the cost of living (84 per cent).
Canadians under the age of 35 were significantly more likely than older generations to be concerned about housing prices (80 per cent versus 54 per cent), interest rates (71 compared to 49 per cent), market fluctuations (71 to 66 per cent), earning capacity (67 to 43 per cent) and job security (47 versus 24 per cent).
“Inflation has risen to a 30-year high, something younger Canadians have never experienced before. These folks are also at an earlier stage of their careers, with lower levels of wealth and income relative to older generations, making the rising costs for everyday household items more unnerving – particularly for those facing higher debt service costs due to rising interest rates,” said Beata Caranci, TD Bank Group senior vice president and chief economist, in a statement.
TD Bank Group commissioned Leger to conduct the online survey of 2,341 Canadians between Feb. 17 and 28.
The survey also found nearly 60 per cent of all respondents have had to revisit their investment strategy due to rising inflation and 58 per cent regret not starting to invest at an earlier age.
Going on vacation is the top overall financial goal for Canadians post-pandemic (primarily among those over the age of 35). But paying down debt was the second-highest priority, followed by investing in the stock market to generate more income. For those under the age of 35, the top priority was saving for a down payment.
“While we anticipate inflation to slow under the weight of higher interest rates and improved supply chains, it will still remain on the high side into 2023. Canadian households should be prepared for an economic phase marked by higher interest rates and higher inflation. However, this is also the phase of the business cycle that requires precision – and a little luck – from the central bank as they try to orchestrate a soft landing,” Caranci noted.
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