Only a little more than a third of Canadians confidently manage their finances well enough

Financial preparedness

Findings in 2023 showed that 32% of Canadian households dipped into savings in response to the rising cost of living. This lack of financial preparedness means many Canadians may be caught off guard in the event of a crisis.

More than half (58%) of Canadian households surveyed were found to have reduced day-to-day expenses in response to financial strain over the last year. Over a third (36%) of the Canadian general population feels anxious about their current financial situation, 37% feel concerned and 25% feel strained by their current situation.

Taking steps to plan and manage money can help. One in five (20%) of WFG clients indicated they are far less likely to feel anxious about their current financial situation and just 14% feel strained.

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Secure in retirement

The study revealed 60% of Canadians aim to be financially secure in retirement. It also indicated 78% of WFG clients have a greater range of long-term financial ambitions and goals compared with the general population at 52%.

Nearly half (46%) of WFG clients feel they would be able to sustain basic financial outlays for over a year were they to suddenly be unable to continue working, as opposed to 28% of the general population. A large number (80%) of WFG clients feel they are somewhat financially prepared for an unexpected life event, compared to 62% of the Canadian general population.

"Results from the recent WFG Financial IQ Study shows a gap between perceived and actual comprehension of financial information," Williams said.

"By improving understanding of even basic financial concepts, our agents believe that people within their communities can improve their financial futures and learn to handle unexpected issues, which will help them feel more secure during economic uncertainty."

World Financial Group has more than 78,000 agents in the US and Canada.

Study Methodology

WFG created an index score based on responses to five questions asked of more than 10,000 respondents in the US and Canada as part of the research (8,000 US households and 2,000 Canadian households).

WFG partnered with independent research agency H/Advisors Cicero to develop insights on how people manage their finances. Specifically, the research benchmarks levels of financial literacy, capability and resilience across the US and Canada. Fieldwork was conducted between July 20 and August 10, 2023

The independent study asked respondents about their financial situation, motivations, and financial understanding. It assessed the understanding, control, preparedness and confidence individuals held around their finances and determined how this affected their financial resilience.