Financial Wellbeing Index Canada: Winter 2022
April 25, 2022
Winter 2022 highlights
Key insight: Two-thirds of Canadians do not know, or are unsure, how much retirement savings they will need.
The financial wellbeing of Canadians declined modestly in Winter 2022 and remains more than two points below the pre-pandemic benchmark.
- Financial knowledge and perception sub-scores declined, while the productivity impact sub-score is unchanged from the prior period and financial behaviour improved modestly.
- Saskatchewan is the only province with a financial wellbeing score above benchmark (0.6). Despite an improvement of 1.5 points over the prior period, the Maritimes has the lowest score (-5.2).
- More Canadians reported a worsening financial situation in Winter 2022 compared to the previous period.
- For the fifth consecutive period, full-time post-secondary students have the lowest financial wellbeing score (-13.5) by a significant margin.
Financial knowledge is lacking in key areas including savings, mortgages, and debt.
- 52% of Canadians do not know what a mortgage term is and a further 16% are unsure.
- 43% are unsure of the annual TFSA limit and a further 12% are incorrect in their response.
- Aside from credit card balance, Canadians are unclear on what constitutes bad debt.
Nearly one-third of Canadians expect their employer pension plan to be their primary source of retirement income.
- 29% will rely on personal retirement savings for their primary source of income in retirement.
- 15% expect their primary source of retirement income to come from government plan(s).
- The lowest financial wellbeing scores, at more than 10 points below the national average, are among those who don’t know where their income in retirement will come from or say that they will worry about it when they get to retirement.