A new RBC poll suggests many Canadian Millennials are struggling to balance the cost of daily living with saving and investing for the future, with a majority reporting anxiety about their financial outlook.
The 35th annual RBC Financial Independence Poll found 64 per cent of Millennials say they are anxious about their financial future, while 57 per cent report having little or no money left after paying monthly bills.
The survey indicates Millennials believe they need nearly $1 million, about $999,000 on average, to achieve financial independence. However, respondents report having saved approximately $126,000 so far, roughly one-tenth of their target.
“Today’s lack of affordability is a crucial challenge for Millennials at a time when they need their money to be working as hard as they are,” said Jodi Wright, senior director and head of RBC Financial Planning. “It can be overwhelming when you’re trying to cover monthly expenses, pay down debt, and invest for the future.”
Other findings highlight broader concerns. Fifty-nine per cent of Millennials say they do not feel financially secure, 45 per cent have dipped into savings over the past year to stay afloat and 40 per cent fear they may never pay off their debts. Forty-four per cent describe themselves as financially squeezed.
The poll also found 65 per cent of Millennials worry about saving for the future while covering current bills, compared with 52 per cent across all generations surveyed.
Despite concerns about long-term goals, including retiring comfortably (52 per cent), achieving financial independence (41 per cent) and building wealth (41 per cent), 43 per cent of Millennials report holding no investments.
Among those who are not investing, 56 per cent say they fear making poor investment choices and 44 per cent lack confidence in their investing knowledge.
While more than half (55 per cent) say they find it difficult to navigate their financial situation alone, only 22 per cent have sought professional financial advice in the past year. Less than half (48 per cent) report having a financial plan, and one-third of those say their plan exists only “in their head.”
Barriers to seeking advice include concerns about being judged (44 per cent), worries that their finances are not in good shape (43 per cent), uncertainty about where to begin (40 per cent) and the perception that financial advisors are only for wealthy individuals (40 per cent).
Wright said professional financial planning can help individuals prioritize goals and create a clearer path forward.
“The real value of a plan is the clarity, momentum and direction it provides,” she said.
The poll findings underscore the financial pressures facing Millennials, many of whom are managing higher living costs and debt burdens while attempting to build long-term financial security.