Summary:
Despite easing inflation and lower interest rates, Canadians remain financially insecure, with 46% dipping into savings to cover daily expenses and 37% feeling worse off than a year ago, according to Willful’s 2025 survey. Mortgage renewals, tariffs, and job uncertainty are exacerbating financial strain, particularly for Millennials and Gen Z. Long-term financial goals are being delayed, with only 40% of Canadians having a will and 36% lacking any financial preparedness plan.
What This Means for You:
- Reassess your budget to manage higher mortgage payments and rising household expenses.
- Prioritize building an emergency fund to avoid dipping into savings for daily costs.
- Create or update essential financial documents, such as wills and power-of-attorney forms, to protect your family’s future.
- Stay informed about economic trends, like tariffs and interest rates, to make proactive financial decisions.
Original Post:
Canadians may be catching a break from inflation and lower interest rates, but it hasn’t restored their sense of financial security. Nearly half of households (46%) have dipped into savings just to cover daily expenses, while 37% say they’re worse off than a year ago, according to a new national survey from estate-planning platform Willful.
The 2025 edition of The Great Delay report paints a picture of Canadians still living in financial limbo, where new headwinds, like tariffs, layoffs and higher mortgage payments for some, are eroding optimism even as interest rates fall.
The survey found that only 46% feel positive about their financial future, down from 52% in 2024.
“Even with inflation easing and interest rates dropping, Canadians are less optimistic about their financial futures,” said Erin Bury, Willful’s CEO and co-founder. “Many people are dipping into savings just to get by.”
Budgets tighten as higher mortgage costs add to the strain
For many Canadians, mortgage renewals have become a new source of pressure on already-tight budgets. As fixed-term mortgages reset from pandemic-era lows, higher payments are forcing households to rethink their financial plans.
Twelve per cent said their mortgage payments have increased in cost, while 31% reported that these higher payments have hurt their finances or delayed long-term goals. The strain is sharpest among Millennials, with 20% saying their mortgage costs have risen and 44% reporting that renewal expenses have set back their household finances or plans.
Beyond mortgage renewals, households are facing continued cost pressures. Concern about inflation has eased to 72% this year from 86% in 2024, but that relief hasn’t restored stability. Average household expenses rose 16.7% in 2025, an improvement from last year’s 22% increase but still enough to keep many families stretched thin.
Tariffs and job uncertainty are adding to the pressure, with more than half of Canadians (53%) saying tariffs have made it harder to budget for essentials like groceries and gas, rising to 61% among Millennials. At the same time, 44% cited layoffs or unemployment as key stressors, a concern that climbs to 67% among Gen Z, as youth unemployment reached 14.7% in September, the highest level since 2010 outside the pandemic.
Long-term goals take a back seat once more
The data show that Canadians continue to postpone major milestones, with half planning to pay off debt this year but only 26% following through. Nearly half also set out to save for the future, yet just 30% achieved it.
Even essential planning is being deferred: just 9% of Canadians made or updated a will in 2025, despite 36% saying they intended to. Similarly, only 6% completed power-of-attorney documents.
Preparedness has barely changed from a year ago, the survey results found. Only 40% have a will, 34% carry life insurance, and 24% have power-of-attorney documents. And 36% of Canadians have neither discussed a plan with their families nor prepared the proper documents, leaving many households exposed to financial and emotional stress when crises hit.
“You can’t control tariffs or interest rates, but you can control how prepared you are for financial emergencies,” Bury said.
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Erin Bury financial stress personal finance savings survey willful
Last modified: October 31, 2025
Extra Information:
How to Build an Emergency Savings Fund: A practical guide from the Government of Canada to help you prepare for financial uncertainties.
How to Make a Will in Canada: Step-by-step instructions from Willful to ensure your estate is in order.
Mortgage Renewal Strategies: Expert tips to navigate rising mortgage costs effectively.
People Also Ask About:
- Why are Canadians dipping into savings? Rising costs and financial instability are forcing many to use savings for daily expenses.
- How do higher mortgage payments affect households? Increased payments strain budgets and delay long-term financial goals.
- What are the key financial stressors in 2025? Tariffs, job uncertainty, and inflation remain top concerns.
- How can I prepare for financial emergencies? Build an emergency fund, update essential documents, and review your budget regularly.
Expert Opinion:
“Financial preparedness is the best defense against economic uncertainties,” says Erin Bury, CEO of Willful. “While external factors like tariffs and interest rates are beyond individual control, taking proactive steps—such as creating a will and building savings—can safeguard your family’s financial future.”
Key Terms:
- Financial security in Canada
- Mortgage renewal strategies 2025
- Emergency savings fund
- Estate planning essentials
- Canadian economic trends 2025
- Managing financial stress
- Gen Z unemployment rates in Canada
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