Repaying debt is Canadians' #1 financial priority: CIBC Poll

A new poll released Wednesday by CIBC indicates that repaying debt is the number one goal for Canadians (18 per cent) in 2023.

The annual Financial Priorities poll also found that inflation (65 per cent), rising interest rates (30 per cent), and recessionary fears (24 per cent) top the list of financial concerns.

The poll said overall sentiment towards finances has weakened in the last year with 55 per cent of Canadians indicating they need to get a better handle on their financial situation this year and one in four people saying they have taken on more debt in the last 12 months.

“The current economic environment has, understandably, prompted Canadians to re-assess their financial priorities for 2023,” said Carissa Lucreziano, Vice-President, CIBC Financial and Investment Advice. “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.”

Other key findings from the poll include:

• 73 per cent of Canadians are worried about the possibility of a recession next year, 62 per cent feel financially prepared for the unexpected and 59 per cent believe their financial situation is secure enough to withstand a recession;
• Other top priorities for 2023 include keeping up with bills (17 per cent) and growing investments (14 per cent);
• Common secondary financial goals for 2023 include saving as much as possible (25 per cent), avoiding taking on more debt (24 per cent), saving for a vacation (21 per cent), and reducing discretionary spending (18 per cent);
• Top reasons for taking on more debt include increased cost of living (47 per cent), day-to-day expenses beyond monthly income (34 per cent), unexpected financial emergencies (16 per cent), higher cost of borrowing (16 per cent) and home repairs (14 per cent);
• 68 per cent of Canadians believe the uncertainty of the current environment makes it difficult to plan;
• Among those currently employed, 40 per cent are concerned about their job security given the present economic environment; and
• 80 per cent report not having had a goal planning discussion with their financial advisor in the last year.

(Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald, covering sports, crime, politics, health, faith, city and breaking news, and business. He works as well as a freelance writer for several national publications and as a consultant in communications and media relations/training. Mario was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list)