Financial Wellbeing Index Canada: Summer 2022
September 7, 2022
What you need to know for Summer 2022
The financial wellbeing of Canadians has fallen sharply and is at its lowest point since the launch of the Index in January 2021.
- All financial sub-scores declined compared to Winter 2022. The perception employees have of their wellbeing (financial perception score) declined most significantly.
- Quebec is the only province with an improved financial wellbeing score (68.4). A five-point decline from Winter 2022 is observed in Saskatchewan while Newfoundland and Labrador has the lowest financial wellbeing score (60.6) following a decline of nearly four points from the prior period.
- The proportion of Canadians reporting a worsening of their financial situation increased five per cent over the prior period and Canadians reporting an increase in financial concern climbed six per cent from Winter 2022.
- Women, younger people (under 40 years of age), parents, and Canadians with an annual household income less than $60,000 have lower scores across all areas of financial wellbeing.
Nearly one-third of working Canadians are concerned about their ability to cover basic living expenses.
- 50% say the biggest impact of inflation is in the cost of groceries.
- 35% say the biggest impact of inflation is in the cost of gas.
- 23% are concerned about their ability to meet mortgage payments if the Bank of Canada raises the interest rate above three per cent.
- The financial wellbeing score among 5% who feel the biggest impact of inflation on debt repayment, is more than 20 points below the national average.
More than half of Canadians would benefit from more financial wellbeing education.
- Younger people (under the age of 40) are more likely to see the benefit of more education about financial wellbeing.
- Those who believe they would benefit from additional financial education have financial wellbeing scores below the national average.
- 47% of Canadians do not know, or are unsure, how to choose a financial planner, and these groups have significantly lower financial wellbeing scores than the national average.