Most people acknowledge that budgeting and saving would reduce financial stress, but the high cost of living and fear of making the wrong financial decision get in the way.simplehappyart/iStockPhoto / Getty Images
In addition to the ambient worries over global security, economic warfare and annexation by a once-friendly neighbour, Canadians are worried about money. FP Canada’s latest annual measure of Canadians’ financial stress confirms it.
The survey found money was the top source of stress for most Canadians (42 per cent), ranking far above other irritants such as health, work and relationships. Leger conducted the online poll in early January.
Most people acknowledged that budgeting and saving would reduce financial stress, but said the high cost of living and fear of making the wrong financial decision get in the way.
The issue is partly one of action. For younger survey participants, lack of education and knowledge about where to seek reliable financial advice are major barriers.
But even those receiving financial advice may have difficulty following through. A 2020 report from the FP Canada Research Foundation outlined potential causes for an “implementation gap” in financial plans, including client procrastination, weak advisor-client relationships, and overly complex plans.
Still, the survey found that Canadians who get professional financial advice are more likely to feel a sense of control over their finances.
As Deanne Gage reported this week, that control is especially valuable in challenging times. With more Canadians worried about job security in the face of tariff threats, getting help with tax strategies for managing a severance package can make a real difference.
And as part of our ongoing Pensions Unpacked series, Alison MacAlpine wrote about the levers retirees with workplace pensions can adjust to lower taxes while drawing income in retirement.
Those are situations in which good advice really pays off, but not everyone can afford it. The FP Canada survey found that Canadians who get professional financial advice are less likely to cite money as their top source of stress, but that could be in part because wealthier people are the ones working with financial professionals.
Finding a way to serve those with smaller accounts, particularly younger Canadians, could go a long way toward reducing stress levels more broadly.
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