Posted By An RBC poll finds Canadians believe they’ll need almost $850,000 to ensure an independent financial future
By Craig Bannon, CFP, MBA, TEP
(Special to Findependence Hub)
For many Canadians, Financial Independence is the ultimate goal: a future where they can live comfortably, support themselves and their families and enjoy their desired lifestyle without the constant stress of striving to make ends meet.
However, with ongoing market fluctuations, a higher cost of living, and overall economic uncertainty, reaching that milestone may feel more challenging than ever before. Many individuals find themselves trying to navigate a complex financial landscape, where saving for retirement and other financial goals requires careful planning and informed decision-making.
Findings from the recent RBC Financial Independence Poll indicate that Canadians believe they need an average of $846,437 to ensure an independent financial future : which they variously described as “having a nest egg large enough to enjoy my retirement,” “not living paycheque to paycheque” and being “debt free.” In some regions, that number is even higher: respondents in the Prairies, for example, estimate they’ll need an average of $958,535. Among generations, Gen X (aged 45 to 60) anticipates needing over a million dollars to achieve Financial Independence.
Investing a Key Strategy for Growth
With such ambitious targets, investing has become a crucial strategy for many Canadians. Nearly half (49%) of poll respondents say they invested in 2024, with Gen X and Millennials participating at similar rates. But concerns linger, with nearly half of all respondents (48%) calling out market volatility and investment performance as a key worry, with this concern jumping to over half (54%) for Millennials.
However, while markets fluctuate, one constant remains: the value of having a strong financial plan based on one’s goals, with a long-term investing strategy to implement, to help investors stay the course through market ups and downs. The encouraging news: 51% of Canadians say they have a financial plan, either formal or informal. Those with a plan report feeling more confident (42%) and reassured (30%) about their financial future.
Staying the Course and Seeking Professional Guidance
For those hesitant to re-start – or begin – investing, waiting for the ‘perfect’ moment to invest may mean missing out on valuable growth opportunities. Time in the market, rather than timing the market, is important. The sooner you can invest and the longer you can be invested, the greater the opportunity to potentially benefit from the gradual growth that markets and economies can experience over the long term.
For Canadians with uninvested funds in a RRSP or TFSA, seeking guidance from an advisor can be of great assistance. Professional advice can help cut through the noise of market uncertainty and help individuals to stay focused on their long-term financial aspirations.
While economic uncertainty remains, Canadians can take meaningful steps toward financial independence by creating a well-structured plan, staying invested with a long-term mindset, and leveraging professional advice.
Regardless of where you are on your investing journey, RBC has advice and resources you can readily access, including on its comprehensive My Money Matters hub, and makes it easy to connect with an advisor through its RBC Financial Planning website. RBC clients can also access MyAdvisor – a digital advice platform which has now connected 4.7 million Canadians to their personalized plan, with the ability to adjust those plans in real time and connect with an advisor via video chat, online banking or in person.
Craig Bannon, CFP, MBA, TEP, is Director, Regional Financial Planning Support for RBC . Craig is a seasoned financial services professional with three decades of experience in financial planning, coaching, and leadership. Holding an MBA along with CFP® and TEP designations, Craig has built a career mentoring financial planners and consultants to deliver outstanding advice, helping clients achieve their financial goals and ultimately their life goals. Craig has held various senior leadership roles at RBC, specializing in financial planning, coaching, and business development. Known for his adaptability, collaboration, and commitment to excellence, Craig also enjoys actively volunteering in the community, including facilitating support groups for adults with ADHD with CADDAC and mentoring professional newcomers to Canada with Immigrant Services Association of Nova Scotia.
Disclaimers
This blog is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. The information presented is believed to be factual and up to date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates. RBC Financial Planning is a business name used by Royal Mutual Funds Inc. (RMFI). Financial planning services and investment advice are provided by RMFI. RMFI, RBC Global Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities which are affiliated. RMFI is licensed as a financial services firm in the province of Quebec. MyAdvisor is an online platform from RBC where you can view your financial information including visual representations (charts and graphs) of your retirement readiness, net worth, cash flow, and financial goal tracking. You can also see how varying your current approach can affect your savings and goals. The MyAdvisor platform also enables you to book an appointment with an RBC advisor and to meet with your advisor using video chat or phone to open new accounts, including investment accounts, and get advice on meeting your financial goals.
