Many Canadians reassessing their finances due to pandemic

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Published February 10, 2021 at 12:23 am

budget

Has the pandemic inspired you to reevaluate how you spend your money?

A recent survey from RBC found that, while the majority of Canadians—69 per cent—said they haven’t personally been negatively affected by the pandemic, it has forced them to reassess how they spend, invest, and save their money.

According to the findings, 39 per cent of those between the ages of 55 and 75 have been financially supporting their friends and family members, while 31 per cent have increased commitments to a family legacy.

Additionally, 20 per cent of older Canadians have been forced to dip into their retirement funds in order to pay for everyday expenses—this number jumps to 30 per cent for those with an annual household income of less than $40,000.

Moreover, 36 per cent said they are not on track to reach their financial goals, and 33 per cent said the pandemic has left them feeling less confident that they’ll have enough money throughout their retirement to be able to afford the lifestyle they would like to lead.

“We know that the uncertainties of the pandemic have impacted Canadians in a variety of ways and we wanted to further explore how financial fluctuations may have affected those who are nearing retirement, or have recently retired,” Selene Soo, director of Wealth Insurance for RBC Insurance, said in a news release.

“Understanding the needs of Canadians during the pandemic helps us understand how to best support our clients during a challenging time,” she continued.

Due to the current state of uncertainty, many respondents are looking to make changes to their portfolios—57 per cent are exploring new strategies to help their money last through retirement, while 30 per cent are adjusting their portfolios and risk tolerance.

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