Cashflow strain, debt worries and low investing confidence weigh on Millennials’ finances
A growing number of Canadian Millennials are struggling to balance daily expenses with long-term financial ambitions, as affordability pressures leave many unable to save or invest at the pace they believe is necessary.
RBC’s latest Financial Independence Poll reveals mounting financial anxiety across the generation, with 64% saying they are worried about their financial future. Almost six in ten respondents report having little or no money left once monthly bills are paid, highlighting how persistent cost pressures are eroding financial flexibility.
Millennials appear particularly vulnerable to current economic conditions. Alongside future worries, 57% expressed concern about their present cashflow, while 59% said they do not feel financially secure.
The squeeze is forcing difficult decisions. Nearly half said they dipped into savings over the past year simply to stay afloat, and 44% described themselves as financially squeezed. Debt anxiety is also rising, with 40% concerned they may never fully pay off what they owe.
Financial independence remains a major aspiration but progress has been slow. Millennials estimate they will need roughly $999,000 in savings to achieve financial independence but have accumulated only about $126,000 on average so far. Sixty-five percent said they worry about trying to save for the future while managing today’s bills.
Despite strong investing ambitions including comfortable retirement (52%), achieving financial independence (41%), and building wealth (41%), four in ten Millennials currently hold no investments.
Among those staying on the sidelines, fear and uncertainty play a significant role. More than half (56%) worry they could make poor investment decisions, while 44% lack confidence in their investing knowledge.
Financial planning itself remains inconsistent. Fewer than half said they have a financial plan, and one-third of those acknowledged the plan exists only informally “in their head.”
Many also feel overwhelmed navigating finances independently. Fifty-five percent said managing financial complexity alone is difficult, yet only 22% sought professional financial advice during the past year.
Poll responses also revealed psychological barriers to seeking help. Among respondents who have avoided working with financial professionals, 44% said they worry about being judged, 43% fear discovering their finances are not in good shape, and 40% said they simply do not know where to begin.
Jodi Wright, Senior Director and Head, RBC Financial Planning said that today's lack of affordability is a crucial challenge for Millennials at a time when they need their money to be working as hard as they are.
"It can be overwhelming when you're trying to cover monthly expenses, pay down debt, and invest for the future,” she said. "Financial Planners can help bring clarity to competing financial demands, prioritize your goals and create a clear roadmap to transform your aspirations into steps you can act on, with realistic timelines. The financial plan they create with you can also help reduce any stress by giving you a sense of control, helping you confidently build the future you have in mind."
