A recent poll by CIBC finds that repaying debt is the top financial goal for Canadians in 2023 as they scramble to cope with inflation and fears of recession.
The bank’s annual Financial Priorities poll released Wednesday found that 18 per cent of Canadians said repaying debt was their number one goal for the year ahead. Other top objectives included keeping up with bills (17 per cent) and growing investments (14).
“The current economic environment has, understandably, prompted Canadians to reassess their financial priorities for 2023,” Carissa Lucreziano, CIBC’s vice-president, financial and investment advice, said in a press release.
“When things feel uncertain, it’s important for people to focus on what is in their sphere of control. A financial professional can help Canadians plan for the unexpected and feel confident when faced with challenges in the year ahead.”
Though a majority of respondents (73 per cent) said they are worried about a possible recession next year, many think they are in a good shape to make ends meet. Sixty-two per cent feel financially prepared for the unexpected and 59 per cent believe their financial situation is strong enough to endure a recession.
The list of popular secondary goals was topped by saving as much as possible (selected by 25 per cent of those polled), followed by avoiding new debt, saving for a vacation, and cutting discretionary spending.
The rising cost of living was leading reason cited for taking on more debt, with unexpected financial emergencies, higher costs of borrowing and home repairs further down the list.
Forty per cent of working people are concerned about their job security and 60 per cent say the uncertainty makes it difficult for them to plan.
“Whether you’re on track to meet your financial goals in 2023 or you’re worried about what the future may hold, we recommend seeking the guidance of a financial expert who can help implement a plan to help you achieve your ambitions this year,” added Lucreziano.
“Recently there has been widespread concern about the impact of rising inflation, job security, and higher cost of living. With these concerns in mind, Canadians should use this time to revisit their financial goals, review their expenses and budget and, if possible, contribute to their emergency fund.”
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