Concerns over Volatile Markets
Investors advised to avoid knee-jerk reactions
Main tip: Adhere to your strategy and focus on key priorities
TORONTO, March 19, 2025 /CNW/ – Canadians are turning to investments as a pathway to financial independence, yet many are anxious about how ongoing market fluctuations may affect their ability to save sufficiently towards this aim.
Findings from the annual RBC Financial Independence Poll indicate that Canadians estimate a need of around $846,437 for a financially independent future. This figure is significantly higher among respondents from Alberta ($928,179), Saskatchewan/Manitoba ($958,535), and Ontario ($916,714), as well as for Gen X ($1,128,990) and Millennials ($945,748) nationwide. To bridge the gap, 49% of respondents invested in 2024, with 49% of Gen X and 46% of Millennials among them.
Simultaneously, nearly half (48%) of all participants expressed worry regarding market volatility and investment performance, with 54% of Millennials and 46% of Gen X echoing these sentiments.
“We are engaging with investors who have numerous inquiries given the current uncertainty. Although it’s challenging to give definitive answers, our advisors possess decades of experience helping clients navigate market fluctuations, and one constant stands out: the importance of having – and adhering to – a solid financial plan with a long-term perspective, particularly during turbulent times,” stated Craig Bannon, Director, Regional Financial Planning Support, RBC.
The poll also revealed that just over half (51%) of Canadians currently have a financial plan, either formal or informal. This includes 50% of Millennials and 44% of Gen X, who indicated that having a plan instilled confidence (42% and 38%, respectively) and reassurance (30% and 35%).
“The confidence and reassurance provided by financial plans during this period are difficult to quantify – particularly when these plans are reinforced by the wisdom of an advisor,” remarked Bannon. “An effective financial plan sets out a strategy for investments to follow. An advisor helps you maintain that strategy, filtering out market distractions and addressing any financial concerns, allowing you to focus on what truly matters: the financial objectives you aim to achieve with your investments.”
Talking to an advisor can also benefit those who have uninvested funds, such as cash deposits made to meet RRSP and TFSA contribution deadlines.
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“If you have funds that are currently idly waiting for the perfect time to invest, you might be missing out on growth opportunities,” added Bannon. “This underlines the importance of time in the market over timing the market. The sooner you can invest and the longer your investment period, the greater your potential to reap the benefits from the gradual appreciation markets and economies may experience over time.”
RBC advice and resources: Individuals can access RBC’s extensive My Money Matters online resources free of charge. For further information about RBC’s financial planning services or to connect with an advisor, please visit RBC Financial Planning. RBC clients also have access to MyAdvisor – a digital advice platform that has connected 4.7 million Canadians to their customized plans, allowing real-time adjustments and connections with an advisor via video, online banking, or in-person.
Quick Insights: RBC Financial Independence Poll
Highlighted Findings – Generations
|
RESPONSE |
CAN |
Millennials (aged 29-44) |
Gen X (aged 45-60) |
Boomers (aged 61-70) |
|
Amount needed for financial independence |
$846,437 |
$945,748 |
$1,128,990 |
$777,931 |
|
Invested during 2024… |
49 % |
46 % |
49 % |
52 % |
|
…in mutual funds |
24 % |
21 % |
28 % |
29 % |
|
…in stocks |
20 % |
22 % |
20 % |
18 % |
|
…in GICs/term deposits |
21 % |
15 % |
20 % |
31 % |
|
…in pension plans |
16 % |
15 % |
22 % |
16 % |
|
…in ETFs |
10 % |
11 % |
13 % |
8 % |
|
…in cryptocurrency (e.g., bitcoin) |
5 % |
8 % |
4 % |
1 % |
|
Primary concern regarding investment: market volatility and performance |
48 % |
54 % |
46 % |
43 % |
|
Financial aim is achieving independence |
41 % |
43 % |
38 % |
40 % |
|
Expectation to achieve financial independence within my lifetime |
55 % |
55 % |
48 % |
53 % |
|
Possession of a financial plan… |
51 % |
50 % |
44 % |
54 % |
|
… and my plan boosts my confidence |
41 % |
42 % |
38 % |
44 % |
|
… and my plan offers reassurance |
36 % |
30 % |
35 % |
45 % |
Quick Insights: RBC Financial Independence Poll
Highlighted Findings – National & Regional
|
RESPONSE |
CAN |
BC |
AB |
SK/MB |
ON |
QC |
AC |
|
Amount needed for financial independence |
$846,437 |
$877,503 |
$928,179 |
$958,535 |
$916,714 |
$616,954 |
$851,157 |
|
Invested during 2024… |
49 % |
51 % |
59 % |
46 % |
|||
|
…in mutual funds |
24 % |
26 % |
34 % |
24 % |
26 % |
16 % |
22 % |
|
…in stocks |
20 % |
21 % |
28 % |
17 % |
24 % |
13 % |
9 % |
|
…in GICs/term deposits |
21 % |
26 % |
25 % |
22 % |
|||
|
…in pension plans |
16 % |
9 % |
12 % |
21 % |
|||
|
…in ETFs |
10 % |
9 % |
15 % |
5 % |
|||
|
…in cryptocurrency (e.g., bitcoin) |
5 % |
2 % |
9 % |
3 % |
|||
|
Key concern about investing: market volatility and investment performance |
48 % |
46 % |
55 % |
46 % |
50 % |
43 % |
45 % |
|
Aiming for financial independence |
41 % |
43 % |
38 % |
40 % |
|||
|
Expecting to achieve financial independence during my lifetime |
55 % |
55 % |
54 % |
49 % |
|||
|
Having a financial plan… |
51 % |
53 % |
57 % |
55 % |
|||
|
… and my plan instills confidence |
41 % |
49 % |
36 % |
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