RBC discovers Canadians' mid-life financial goals and how they plan to reach them
Gen X – those aged 44 to 59 – make up the largest cohort of middle-aged Canadians but the oldest Millennials (28-43) are joining them. But what financial goals and investment preferences do they share?
The RBC Financial Independence Poll included adults 18 and above but when breaking out the stats for those over 40 some clear mid-life challenges and desires emerge, especially given the current economic challenges.
The old business adage that ‘cash flow is king’ is also true for individuals and around seven in ten respondents in middle age said this is their number one concern currently as they try to keep on top of everyday expenses.
Longer-term finances are the next biggest concern with 85% of Millennials and 82% of Gen Xers worried about being able to save for the future while covering the costs of today. Around half of both cohorts are concerned about their financial future.
Even with budgets squeezed by inflation and higher interest rates, both groups are also keen to break free from debts, which they consider to be key to ‘financial independence’.
Investing for the future
Around four in ten respondents said being financially independent means having money to invest.
They note the importance of their investments in helping them reach their financial goals, which include:
- Retiring comfortably (46% of Millennials and 56% of Gen X said this)
- Building a safety net (45% and 44%)
- Building wealth (42% and 34%)
- Providing family protection/safety (34% and 23%)
And they also expressed their preferences for investment options:
- Stocks (25% Millennials, 21% Gen X)
- Pension plans (25% and 26%)
- Mutual funds (24% and 34%)
- GICs or term deposits (18% and 22%)
- ETFs (14% and 11%)
Despite the range of low- and zero- fee investment options entering the market, the survey also discovered that 49% of Millennials and 40% of Gen Xers are willing to pay fees to get better returns on their investments.
