Many Canadian households do not have long-term financial plans or emergency accounts
A biennial survey by FP Canada has found that nearly 40% of Canadians cannot afford a financial emergency, while 57% believe that they can achieve their financial life goals.
These readings marked notable departures from the results of the 2018 edition of the survey, which found that 33% of Canadians wouldn’t be able to handle sudden financial shock and 67% expressing confidence in their ability to reach their goals.
Respondents in the 45-54 age range were found to be the most cynical towards their prospects, with 53% saying that they couldn’t handle an emergency. In terms of geographic distribution, Canadians residing in the Prairies were the most pessimistic towards their financial capabilities. Forty-five percent of Prairie respondents questioned their ability to weather a serious economic storm.
The survey, which was released to commemorate Financial Planning Week from November 15 to 21, also found that 39% of Canadian households currently do not have long-term financial health plans. Another 37% said that they “rarely or never” set aside funds in emergency accounts.
“This is an opportune time to take a hard look at how people are faring with their finances,” said Mark Halpern, CEO and founder of WEALTHinsurance.com. “Given the whirlwind year we’ve had, it’s no wonder that people are feeling stressed about their financial situations…Now more than ever, it's important to put a plan in place so that household fiscal burdens don’t become too overwhelming.”
