Letter from Erin Bury, CEO and co-founder of Willful:
At Willful, we know that planning for the future is more important than ever, especially given the financial pressures many of us are facing. We surveyed over 1,000 people in Canada to better understand how rising costs are impacting financial planning decisions across the country.
We confirmed what many of us already know - that it’s becoming harder for people in Canada to balance everyday obligations with long-term goals like saving for retirement, buying a home, or even planning a family vacation.
As we head into 2025, these findings highlight why it’s so important to start conversations about estate planning now and to take steps toward securing your family’s financial future today. November is both Make a Will Month and Financial Literacy Month, so there’s never been a better time to start planning.
—Erin Bury, CEO and Co-founder of Willful
Savings squeezed to make ends meet
Many of us are walking a financial tightrope, attempting to balance our current financial needs with future security. While two-thirds (62%) of survey respondents have a TFSA and one in three (30%) have non-registered savings, nearly half (48%) say they’ve had to dip into those savings to cover day-to-day expenses over the past 12 months.
As their savings continue to get squeezed to make ends meet, 42% of survey respondents say they’re in a worse financial situation than they were on January 1, 2024.
Inflation pressures many to put financial goals on hold
A staggering 86% of survey respondents say they’re concerned about the impact of inflation on their financial goals, with single individuals (91%) and parents with minor children (90%) most likely to report this sentiment.
This pressure is forcing Canadians to reassess their financial to-do list, with many of their goals being put on hold. Notably, 39% have pressed pause on saving up for the future and 32% have delayed paying off debt.
Other major financial milestones are also being put on the sidelines such as home renovations (29%), buying a car/vehicle (25%), and buying a home (20%)
Tough economy, lack of future plans means most feel increased financial risk
Canadians are increasingly financially vulnerable, with 71% believing their financial risk has increased in the event of potential unexpected events, such as death or emergencies.
However, a significant majority of respondents have not taken crucial steps to make progress in emergency planning, with 59% reporting they don't have a will, 73% reporting they don't have power of attorney documents, and 65% reporting they don't have life insurance. Canadians listed getting or updating a will as one of the top three financial goals on their list.
Older individuals are significantly more likely to have essential documents for emergency planning, and are less likely to report increased financial risk for themselves and their family.
Parents feel the pinch the most
While the cost of living is on the rise for everyone, parents with young children have been hit particularly hard, making them more likely to feel the impacts of inflation on day-to-day expenses. As a result, they’re more likely to put off their financial goals.
A PLAN to start preparing for the future
Prioritize key financial to-dos for 2025, whether that’s paying down debt, getting or updating emergency plans, or starting to invest for you and your family’s future. Pick your top three priorities for 2025 and set deadlines for each one, knowing you can start small and build from there.
Learn more about gaps in your financial plan through articles, online resources, or advice, and learn about how you can fill those gaps affordably and conveniently using online tools.
Assess regularly. Your financial plan isn’t set and forget it, and neither are key documents like your will. As you go through major life changes or milestones, you should update key documents or products like your will or life insurance, or get new investment products like an RESP.
Normalize talking about your financial situation with your spouse and family, especially if you have aging parents and could be given power of attorney or act as their executor. While it’s not always dinner table conversation, ensuring that you’ve filled your financial gaps is as important as ensuring your family members have filled theirs.
Download the full report for more insights about how people in Canada are navigating these financial pressures.
If you’re ready to get your estate plan in place, you can start for free today with Willful!
