Good Morning!

Forget Freedom 55 — the new golden age of retirement in Canada is 61.

That’s according to a CIBC poll that found that 61 is now the average age Canadians hope to retire. 

However, more than half of the non-retirees polled have doubts they will be able to achieve that goal. Less than half (41 per cent) feel confident they are saving enough. 

With inflation still running hot and interest rates the highest since 2007, Canadians, whether they are nearing retirement or not, are increasingly worried about their finances.

CIBC’s poll found 57 per cent of Canadians are shifting their focus from planning for the future to meeting their current needs. More than a third of these said they have delayed their retirement plans because of economic conditions.

Another recent poll by Scotiabank, found that Canadians are worrying about their finances for about five hours more a week than last year. The average amount of time spent worrying is 15 hours a week, up from 10 last year, or about 31 days a year, roughly the same amount of time you might spend on a part-time job. 

A part-time job would pay more.

“Canadians continue to feel the impact of higher prices on their wallets, and this is leading to more time spent worrying. For most Canadians, their income has not kept pace with the rising costs of what they buy, with groceries and gas continuing to be the biggest drivers of strain for households,” said Kingsley Chak, senior vice-president, retail deposits, savings, and investments at Scotiabank. 

The biggest worries are paying for day-to-day expenses (44 per cent), paying off debt (39 per cent), and saving for emergencies (38 per cent).

One in four Canadians (26 per cent) are so stressed about their finances that they are losing sleep over it, the poll found. 

Apparently Albertans are the most stressed about money, while people in Quebec are the least. 

And it isn’t just those nearing retirement who are anxious. A RBC poll last week found confidence levels in young adults aged 18 to 34 have plunged. Only 18 per cent said they were confident about their financial futures, compared to 31 per cent last year.

 More than half said they were not prepared for the impact of rising costs with the top reason being “I just never experienced high inflation before.” 

Understandable, last time inflation was this high was the 1980s. 

Was this newsletter forwarded to you?

Sign up here to get it delivered to your inbox.

LEADING INDICATOR

Ouch, now there’s a disturbing chart. According to Statistics Canada, investment in the manufacturing sector in this country has been so low over the past 20 years that it hasn’t even kept up with the depreciation of existing machinery and plants, writes National Bank’s Stefane Marion.

Because of this investment drought, last year’s capital stock, which includes equipment, buildings, land and research and development, is the lowest in more than 30 years, lower than when the first free trade agreement with the United States came into being in 1989. In comparison, America’s capital stock is at a record high.

Marion points out that Canada currently has 15 free trade agreements with 51 different countries, covering 1.5 billion consumers worldwide. With all that access you would think Canadian manufacturers would invest to take advantage of it.

“Sadly, this is not the case,” wrote Marion in a note. “The Canadians situation is troubling, to say the least.”

FP MUST READS

• BMO beats expectations despite profit fall
• Scotiabank misses expectations as profit slips
• These are the 15 most and least affordable cities in Canada in the first year of homeownership
• ‘It’s a stark difference’: Even Canadian cleantech companies are rushing to the U.S. for Biden’s climate subsidies

— Warren Buffett, whose cash pile just hit US$128.6 billion

MARKET SIGNALS

BREAKING TODAY

• Budget day for Alberta and British Columbia

• Environment and Climate Change Minister Steven Guilbeault will deliver the keynote speech at the GLOBExCHANGE 2023 in Toronto. Guilbeault will hold a conversation with Sandra Odendahl, senior vice-president and head of sustainability and diversity at the Business Development Bank of Canada

• Mona Fortier, president of the Treasury Board; and Steven Guilbeault, minister of the environment and climate change, will also announce initiatives to reach Canada’s Net-Zero commitments

• The standing committee on Canadian heritage meets to discuss a request to undertake a study of the censoring of news content by Google

• Natural Resources Minister Jonathan Wilkinson will deliver remarks and make an announcement at the Thunder Bay Chamber of Commerce

• Filomena Tassi, minister responsible for FedDev Ontario; and Lloyd Longfield, Liberal MP for Guelph, will make an announcement in support of economic growth and job creation for the food packaging sector in southern Ontario

• Today’s Data: Canada real GDP, U.S. advance economic indicators report, S&P CoreLogic Case-Shiller Home Price Index, Chicago PMI, Conference Board Consumer Confidence Index
  
• Earnings: Bank of Montreal, Bank of Nova Scotia, Laurentian Bank, First National Financial, Target, J M Smucker Co., Aecon Group, HP Inc., Monster Beverage, Novavax, Urban Outfitters

PERSONAL FINANCE

You’ve been watching the cost of living tick up, and wondering if your nest egg is going to be enough — don’t worry. You’re not the only one. Our content partner MoneyWise can help with three easy ways to catch up on saving and get cracking on your retirement goals.