Many Canadians are dipping into savings just to survive as the cost-of-living crisis continues to bite
A new survey by the Royal Bank of Canada (RBC) highlights how the rising cost of living is impacting Canadians, with more than half of respondents describing themselves as “financially paralyzed.” The RBC Financial Flexibility Poll, released Thursday, sheds light on the struggles many Canadians face in managing their day-to-day expenses and planning for the future.
The poll found that 55% of respondents feel unable to move forward financially, and 50% admitted to spending their entire income on essential bills and expenses. Furthermore, 29% reported their finances were in “a constant state of chaos,” and nearly half—48%—said they believe they will never get ahead financially.
Craig Bannon, RBC’s director of regional financial planning support, said these findings reflect the growing financial pressures Canadians are facing. Bannon noted high costs continue to erode financial flexibility, and so it’s not surprising that many Canadians are feeling anxious and unsure of their next steps.
“If this was a medical health issue, you would seek the expertise of a medical professional,” he said. “We’re advising Canadians to use the same approach to their financial health.”
However, seeking financial help may be a challenge for some. Nearly half of respondents, or 47%, said they find it difficult to think about their financial future while struggling to meet immediate expenses. The same percentage reported living “bill to bill,” and many are tapping into emergency funds or retirement savings to cover rising costs.
The poll also revealed concerns about financial security. Forty-four percent (44%) of Canadians worry that it’s only a matter of time before they run out of money to live comfortably, while 18% believe they are already financially overextended. In 2025, unexpected expenses topped the list of financial risks, with 44% identifying it as their biggest worry. Sixty percent said they currently lack the funds to address unforeseen costs.
Debt is also playing a significant role in these challenges, with 27% of respondents reporting they have taken on additional debt to cover basic monthly needs. Nearly a quarter said they have sought financial assistance from family or moved in with relatives to ease their burdens.
The poll, which surveyed 1,515 Canadian adults online between November 1 and 5, offers a glimpse into the financial difficulties many households face. RBC noted that a sample of this size has a margin of error of ± 2.5 percentage points, 19 times out of 20.
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