More than half of Canadians say their income can’t keep up with inflation as debt stress climbs
Canadians are more worried about paying their bills than hitting their return targets—and that anxiety is increasingly driving how they use credit, seek advice and respond in meetings.
According to TransUnion’s Q4 2025 Canada Consumer Pulse Study, 53 percent of Canadians say their household income is not keeping pace with inflation, and 31 percent are pessimistic about their household finances over the next 12 months.
At the same time, 25 percent report they cannot pay at least one current bill or loan in full, with TransUnion noting that credit cards and personal loans are the most commonly affected, followed by student loans and mortgages.
TransUnion also reports that more than one in four Canadians believe the country is already in a recession and a further chunk expect one within the year.
Most of those who see a recession as current or imminent say they are responding by cutting spending, building savings or paying down debt, and many are trimming discretionary spending such as dining out, travel and entertainment.
Some expect to reduce retirement contributions despite worrying they are not saving enough.
Credit has become both a pressure point and a lifeline.
TransUnion says 82 percent of Canadians view access to credit and lending products as important to reaching their financial goals, but only 56 percent believe they have sufficient access.
Just over one in five plan to apply for new credit or refinance within the next year, led by Gen Z and Millennials, with new or higher-limit credit cards at the top of the list.
TransUnion data indicate Millennials now account for 38 percent of Canada’s total outstanding debt, about $988bn, which heightens their sensitivity to rates and employment risks.
Against that backdrop, more people are looking for structure, but advice gaps remain.
KPMG’s 2025 Financial Planning Survey cited by Wealth Professional says that more than half of Canadians now rely on a financial planner, yet 45 percent either have no plan or manage their finances without professional advice.
KPMG finds that 96 percent of respondents see the value of having a plan, with “peace of mind” the main motivator, and 64 percent say it is “extremely important” that any plan reflects their own circumstances, risk tolerance and life stage.
More than 80 percent expect specific steps, timelines and projections, not generic guidance.
Delivery still needs a human core.
KPMG says only 27 percent of respondents prefer self-service options, while 43 percent want to work directly with a financial advisor and 30 percent favour a hybrid model that blends human and digital.
Younger Canadians are the least likely to have formal plans, even though their priorities centre on managing risk, supporting family and gaining that peace of mind.
Engagement and confidence rise with wealth, with Mass Affluent and High-Net-Worth Canadians far more likely to work with planners and to feel confident about retirement.
How those planning conversations feel may now matter as much as what they cover.
Wealth Professional reported that AI solution provider Jump, in its 2026 Financial Advisor Insights Report, analysed about 12,000 anonymized US advisor–client meetings using conversational intelligence
Jump reports that emotion consistently outweighs markets as a predictor of outcomes: almost half of meetings included at least one explicit client fear—most often inability to pay bills, job or income loss, portfolio losses or rising taxes—and those fears dragged down starting sentiment.
To track that, Jump created a 1–10 Client Sentiment Index and found that changes in that score did a better job than demographic or portfolio data in predicting product acceptance and decision-making.
Advisors with higher “emotional intelligence” scores—based on talk-time balance, open questions, empathy and emotional check-ins—lifted client sentiment by about 17.5 percent during meetings, almost double the gain of lower-ranked peers, and saw better follow-through on recommendations.
Jump notes that topics like tax planning and estate planning were consistently linked to more positive end-of-meeting sentiment, suggesting advisors who lean into those areas can both support anxious clients and strengthen relationships.
