The seventh annual IG Wealth Management Financial Confidence Index highlights stability in 2024 after years of economic volatility. However, concerns about 2025 and regional differences in financial confidence remain significant.
This year’s Index demonstrates a plateau in confidence following a decline from the 2021 high of 57. Canadians’ trust in the economy remains a weak point, although recessionary fears have lessened compared to the previous year.
The 2024 results presented in this summary report are from an Ipsos survey conducted online from September 20th to October 1st, 2024. A total sample of 2,001 respondents from across Canada participated in the survey.
Weighting was applied to the total sample by age, gender, region and education level to ensure that the composition of the final sample is representative of Canada’s adult population according to the latest census data from Statistics Canada.
- Year-end Index stands at 50, same as 2023 and one point below 2022
- Canadians’ trust in the economy on shaky ground with majority fearing a recession in 2025
- Western provinces’ average financial confidence ahead of their Eastern neighbours, with B.C. leading the way
- Financial confidence of those who work with an advisor 15 points higher than those who do not
Financial Confidence Trends
The Index, developed by IG Wealth Management and Ipsos Canada, evaluates Canadians’ financial confidence based on four key areas:
- Current Personal Financial Situation
- Personal Financial Outlook
- Planning and Literacy
- Trust in the Economy
This year’s score held steady at 50, matching 2023 and slightly below 2022 (51). In contrast, the Index peaked at 57 in 2021, supported by economic recovery, low interest rates, and post-pandemic optimism.
While current personal financial situations are generally stable, anxieties persist regarding job security, the political climate, and global issues. Regionally, some provinces exhibit higher financial confidence than others.
British Columbia leads with a score of 55, while Quebec’s confidence has declined (down 4 pts to 49).
Canadian’s Financial Confidence Index – Historical
After a downward trend since 2021, the index stabilizes in 2024, indicating a steadying financial outlook for Canadians following a period of uncertainty.
The Index, commissioned by IG Wealth Management and conducted in partnership with Ipsos Canada, tracks and reports on Canadians’ overall financial confidence based on 10 survey questions relating to IG’s Four Pillars of Financial Confidence: Personal Financial Outlook, Planning and Literacy, Trust in the Economy and Current Financial Situation.
Trust in the Economy Drags Overall Confidence
Trust in the Economy scored 40, the weakest of the four pillars and over 10 points lower than others.
Contributing factors included:
- While 54% of Canadians anticipate a recession, this reflects improvement from 68% last year.
- Over a third (38%) expect job market conditions to worsen in 2025.
- Half of Canadians believe the political and economic climate in Canada and the U.S. will deteriorate next year.
Results suggest a standardization trend across regions, as most provinces are now within 1-2 points of the National average.
“While financial confidence has stabilized post-pandemic, anxiety about rising costs, housing challenges, and political uncertainty remains a challenge for many Canadians,” said Damon Murchison, President & CEO of IG Wealth Management.
Regional Divide in Financial Confidence
The latest Index reveals a regional divide in Canadians’ financial confidence, with the average confidence level of the four Western provinces ahead of their Eastern counterparts. B.C. outpaced all provinces with a high score of 55%, while Quebecers’ confidence (49%) dropped by a significant four points from 2023.
These results may, in part, be attributed to the proactive approach of British Columbians, as more than half (51%) report using financial advice – significantly higher than the national average (43%).
Political and economic factors, including a disproportionate reaction to recent interest rate reductions and wage increases, may also explain this recent surge in optimism. On the other hand, Quebec’s declining confidence calls for greater financial education and guidance with just 49% of Quebecers feeling prepared and on track to meet their financial goals, a steep decline from 62% last year.
Impact of Financial Advice
The Index reveals a clear benefit for those working with financial advisors. Canadians with advisors scored 59 in confidence, significantly higher than the 44 reported by those without.
Given the growing complexity of the world around us, the speed at which things are changing and the volatility of the last few years, it’s not a surprise that people who work with an advisor feel better about their situation
A qualified advisor can put things in perspective, help you see the forest from the trees and create an integrated financial plan that takes all dimensions of your financial world into consideration.
Survey Methodology
The 2024 Index findings are based on an Ipsos online survey conducted from September 20 to October 1, 2024, with 2,001 participants across Canada. The sample was weighted to reflect national demographics and carries a credibility interval of +/- 2.2% 19 times out of 20.
FAQ
The Index evaluates Canadians’ financial confidence across four key areas: Current Personal Financial Situation, Personal Financial Outlook, Planning and Literacy, and Trust in the Economy. It is based on a survey conducted by Ipsos Canada and commissioned by IG Wealth Management.
The 2024 Index score is 50, matching 2023 and slightly below 2022’s score of 51. The Index peaked at 57 in 2021, reflecting optimism during the economic recovery and low interest rates.
Trust in the Economy scored 40, over 10 points lower than the other pillars. Key concerns include:
54% of Canadians anticipating a recession in 2025 (down from 68% in 2023).
38% expecting worsening job market conditions.
Half of Canadians believing the political and economic climate in Canada and the U.S. will decline next year.
Western provinces, led by British Columbia (55), report higher financial confidence than Eastern provinces. Quebec saw a four-point drop to 49, highlighting regional disparities. Factors like proactive financial planning in B.C. and economic uncertainty in Quebec play a role.
Canadians with financial advisors scored 59 on the Index, compared to 44 for those without. Advisors provide perspective, guidance, and integrated financial planning, which boosts confidence amid economic volatility.
Key challenges include rising costs, housing affordability issues, political uncertainty, and concerns about job security and economic conditions in Canada and the U.S.
The findings are based on an online Ipsos survey of 2,001 Canadians conducted from September 20 to October 1, 2024. The sample was weighted to match Canadian demographics and has a credibility interval of +/- 2.2% 19 times out of 20.
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AUTHOR: Derek Brasier – Vice President, Ipsos North America
