End of year Index stands at 57, compared to 50 in 2020
Women still lag men but appear to be turning the corner
Western recovery- Alberta and BC make significant gains
WINNIPEG, MB, Nov. 26, 2021 /CNW/ – According to the 2021 edition of the IG Financial Confidence Index (“the Index”), Canadians’ confidence is on the rise as the country gradually emerges from the COVID-19 pandemic. However, while people are feeling better about their current financial situation, there is apprehension about their future and concerns about where the country could be headed in the year ahead.
The Index, commissioned by IG Wealth Management (“IG”) and conducted in partnership with Ipsos Canada, tracks and reports on Canadians’ overall financial confidence through ten survey questions, which account for short-term and long-term financial considerations. The study found that Canadians’ overall financial confidence at the end of the year stands at 57. This represents a 14 per cent increase over the same period in 2020 (50) and is up 3 points since mid-2021. Key findings include:
Fifty-six percent of respondents reported being comfortable making a major purchase (versus 50 per cent in the mid-year study).
Almost 60 per cent are feeling good about the economic conditions in their community (versus 47 per cent mid-year).
Sixty per cent stated that their personal income increased in the last few months.
However, despite this positive perception of their current financial situation, Canadians coast-to-coast reported being concerned about the year ahead:
Just a quarter of respondents are feeling confident that the Canadian economy will improve and only 22 per cent feel the stock market will build on 2021 gains.
Similarly, only 14 per cent believe inflation will abate in 2022 and 12 per cent think housing affordability will get better.
“It’s great news that Canadians are feeling a renewed sense of confidence as we close the year,” said Damon Murchison, President & CEO, IG Wealth Management. “People are more secure as the economy starts to fully re-open, Covid-19 cases decline and we return to a certain degree of normalcy.”
Mr. Murchison continued, “However, we’re also seeing apprehension about the future. Inflation and housing affordability are real concerns for many. It’s a perfect time to work with an advisor to either revisit or create a holistic financial plan that not only addresses the present, but also helps ensure you’re well insulated for what could come.” According to the study, 80 per cent of Canadians who consulted with a financial planning professional over the last year expressed confidence in their short- and long-term financial situations (versus less than 60 per cent who did not).
Signs of a “She-Covery” and Western Canada Rebound?
The study revealed some optimistic findings among women and those in the West (Alberta and BC):
While women continue to lag men in financial confidence (54 versus 59), their Index number is up 3 points versus the mid-year finding.
The provinces of Alberta and BC are up significantly since Spring 2021 (5 points), reporting the biggest gains among the provinces.
“There’s no question that women were hit disproportionately hard by the pandemic- both in terms of their participation in the workforce and the extra pressures they’ve faced versus men when it comes to taking care of children and elderly family members,” noted Mr. Murchison. “This is especially true among lower income and racialized women. While we still have a long way to go, it’s encouraging that the Index seems to be showing a positive trend.”
Mr. Murchison closed by noting that the rebound in Western confidence can largely be attributed to a decrease and stabilization of reported Covid-19 cases and an increase in energy prices. “Over the last three years we’ve seen Alberta in particular lag other regions. Albertans seem to be rebounding, which is great news.”
The IG Financial Confidence Index is part of IG Wealth Management’s community program, IG Empower Your Tomorrow, launched in 2018. The program is dedicated to building the financial confidence of Canadians, especially those that need it most including: Indigenous Peoples, Newcomers, Seniors and Youth. Working with community partners and charities along with employees and clients, IG Wealth Management develops and executes seminars and workshops focused on increasing the financial confidence of these key groups, including the award-winning Money & Youth program which for more than 20 years has been helping high school students, teachers and parents with financial literacy.
Visit IG Empower Your Tomorrow to learn more about the various initiatives IG Wealth Management currently supports.
About IG Wealth Management
Founded in 1926, IG Wealth Management is a national leader in delivering personalized financial solutions to Canadians through a network of advisors located across Canada. In addition to an exclusive family of mutual funds and other investment vehicles, IG offers a wide range of other financial services. IG Wealth Management has $116.5 billion in assets under advisement as of October 31, 2021 and is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada’s leading diversified wealth and asset management companies with approximately $271 billion in total assets under management and advisement as of October 31, 2021.
About the IG Financial Confidence Index
The 2021 results presented in this summary report are from an Ipsos survey conducted online from October 8th to October 14th, 2021. A total sample of 2,601 respondents from across Canada participated in the survey. Weighting was applied to the total sample by age, gender, region and education level to ensure that the composition of the final sample is representative of Canada’s adult population according to the latest census data from Statistics Canada. Since an online sample is not considered probabilistic, Ipsos does not apply a margin of error to this survey. The precision of non-probabilistic Ipsos surveys is measured using a credibility interval. The credibility interval for a survey of 2,601 respondents is ±2.3 percentage points, 19 times out of 20. The credibility interval will be wider among subsets of the population.
SOURCE IG Wealth Management
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