RBC planners urge young Canadians to start small and use advice to cut money stress
Nearly two-thirds of Millennials feel anxious about their financial future and more than half say they have little or no money left after paying monthly bills, according to the 35th annual RBC Financial Independence Poll.
The survey found that 64 percent of Millennials are anxious about what the future holds for their finances, and 57 percent report they have little or no money left over after they pay monthly bills.
The poll indicates broader strain: 59 percent of Millennials say they do not feel financially secure, 44 percent feel financially squeezed, and 40 percent are concerned they will never pay off their debts.
Over the past year, 45 percent say they have dipped into their savings to keep themselves afloat.
Jodi Wright, senior director and head, RBC Financial Planning, said 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.”
She added that “it can be overwhelming when you’re trying to cover monthly expenses, pay down debt, and invest for the future.”
Planning and investing gaps are prominent.
Less than half (48 percent) of Millennials have a financial plan, and of those, one-third (33 percent) describe their plan as being in their head rather than more formally created.
While over half (55 percent) are finding it difficult to navigate the complexities of their financial situation alone, less than one quarter (22 percent) have used a professional for financial advice over the past 12 months.
On average, Millennials believe they need approximately $1m to achieve financial independence, but most have saved only about one-tenth of that amount so far.
The poll highlights clear barriers to working with financial advice professionals.
Among Millennials, 44 percent say, "I don't feel I know enough and don't want to be judged," 43 percent are "worried about finding my finances aren't in the best shape," 40 percent say, "I don't know where to start with financial planning," and 40 percent agree that "Financial advisors are just for the rich."
Investing goals are still strong: 52 percent of Millennials cite retiring comfortably as a top investing goal, 41 percent name achieving financial independence, and 41 percent highlight building wealth.
At the same time, 43 percent do not hold any investments.
Two key reasons stand out in the poll: 56 percent worry that they might make poor investment choices and 44 percent say they lack confidence in their investing knowledge.
This is where financial advice professionals come in, Wright said.
She noted that “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.”
She added that a financial plan can “help reduce any stress by giving you a sense of control, helping you confidently build the future you have in mind.”
Wright said Canadians don’t need to have all the answers, because “that’s what our Financial Planners are here for.”
She said planners help clients “strike the right balance between living well today and preparing wisely for tomorrow,” and that the real value of a plan is the “clarity, momentum and direction it provides,” not having “millions of dollars” to invest.
She added that “performance and advice matter” when people pursue their goals.
