As inflation ticks higher, younger Canadians worry about the cost of living: TD Wealth Survey
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Canadians under the age of 35 are significantly more likely to be concerned about nearly every aspect of their personal finances than older generations
TORONTO, April 20, 2022 /CNW/ - With inflation rising to levels unseen in this country since the early 1990s, Canadians are becoming increasingly concerned about their finances, and younger generations appear to be the most worried about everything from mortgage rates to job security.
That's according to the 2022 TD Wealth Survey, which found that surging inflation topped the list of personal finance concerns for 87 per cent of Canadians, followed closely by the cost of living at 84 per cent.
Younger Canadians under the age of 35 were significantly more likely than older generations to be concerned about; housing prices (80 per cent vs. 54 per cent), rising interest rates (71 per cent vs. 49 per cent), market fluctuations (71 per cent vs. 66 per cent), their salary/earning capacity (67 per cent vs. 43 per cent) and job security (47 per cent vs. 24 per cent).
"Inflation has risen to a thirty-year high, something younger Canadians have never experienced before. These folks are also at an earlier stage of their careers, with lower levels of wealth and income relative to older generations, making the rising costs for everyday household items more unnerving—particularly for those facing higher debt service costs due to rising interest rates," said Beata Caranci, SVP & Chief Economist, TD Bank Group. "While we anticipate inflation to slow under the weight of higher interest rates and improved supply chains, it will still remain on the high side into 2023. Canadian households should be prepared for an economic phase marked by higher interest rates and higher inflation. However, this is also the phase of the business cycle that requires precision—and a little luck—from the central bank as they try to orchestrate a soft landing."
Key findings from the TD Wealth Survey also revealed that:
"With soaring inflation, continued market volatility and rising rates, layered with a weary society slowly emerging from the pandemic, we're seeing increasing levels of financial stress among Canadians and retail investors alike," said Brad Simpson, Chief Wealth Strategist, TD Wealth. "While we expect this rise in inflation to ebb, it's an important reminder for Canadians to remain focused on their long-term financial goals, understand their risk tolerance and connect with a Financial Advisor who can support them."
About the 2022 TD Wealth Survey
TD Bank Group commissioned Leger to conduct an online survey of 2,341 Canadians, weighted by age, gender, region and income, using Leger's online panel. Responses were collected between February 17 and 28, 2022. The margin of error for this survey was +/-2.0%, 19 times out of 20.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the fifth largest bank in North America by assets and serves more than 26 million customers in three key businesses operating in a number of locations in financial centers around the globe: Canadian Retail, including TD Canada Trust, TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD Insurance; U.S. Retail, including TD Bank, America's Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in The Charles Schwab Corporation; and Wholesale Banking, including TD Securities. TD also ranks among the world's leading online financial services firms, with more than 15 million active online and mobile customers. TD had CDN$1.8 trillion in assets on January 31, 2022. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.
SOURCE TD Bank Group