Canadians may be shaking off inflation and lower interest rates, but that’s not restoring their financial security. A new national survey from estate planning platform Willful shows that nearly half of households (46%) are dipping into savings just to cover day-to-day expenses, while 37% say they are worse off than a year ago.
2025 edition big delay The report paints a picture of Canadians still living in financial distress, with new headwinds such as tariffs, layoffs and higher mortgage payments for some, even as interest rates fall, eroding optimism.
The survey found that only 46% of people feel optimistic about their financial future, down from 52% in 2024.
“Even as inflation eases and interest rates fall, Canadians remain less optimistic about their financial future,” said Erin Bury, CEO and co-founder of Willful. “Many are dipping into their savings to survive.”
Budget tightening worsens as rising mortgage costs
For many Canadians, mortgage renewals have become a new source of stress on already tight budgets. As term mortgages reset from pandemic-era lows, higher repayments are forcing households to rethink their financial plans.
12% said their mortgage payment costs had increased, while 31% said these higher payments hurt their finances or delayed long-term goals. Millennials are facing the most stress, with 20% saying their mortgage costs have increased and 44% saying renewal costs have impacted their household finances or plans.
In addition to mortgage renewals, households are facing ongoing cost pressures. Concerns about inflation have fallen from 86% in 2024 to 72% this year, but the relief has not returned to stability. Average household spending will grow by 16.7% in 2025, an improvement from last year’s 22% increase, but still enough to leave many households stretched.
Tariffs and job uncertainty are adding to the stress, with more than half of Canadians (53 per cent) saying tariffs have made it more difficult to budget for essentials like groceries and gas, rising to 61 per cent among Millennials. Meanwhile, 44% cited layoffs or unemployment as a major source of stress, with this concern rising to 67% among Gen Z as youth unemployment reached 14.7% in September, the highest level since the pandemic began in 2010.
Long-term goals take a back seat again
Data shows Canadians continue to put off major milestones, with half planning to pay off debt this year but only 26 per cent taking action. Nearly half also plan to save for the future, but only 30% do so.
Even important planning is being postponed: Only 9% of Canadians have made or updated a will in 2025, although 36% say they plan to do so. Likewise, only 6% completed the power of attorney document.
The findings found that preparedness has changed little from a year ago. Only 40% have a will, 34% have life insurance, and 24% have a power of attorney document. 36 per cent of Canadians have neither discussed plans with their families nor prepared appropriate documentation, leaving many families facing financial and emotional stress when a crisis strikes.
“You can’t control tariffs or interest rates, but you can control how prepared you are for financial emergencies,” Burry said.
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Erin Bury Financial Stress Personal Finance Savings Survey Wayward
Last modified: October 31, 2025
