The Big Squeeze: RBC poll finds majority of Millennials caught between covering monthly costs and trying to save and invest for their future

Executive Summary

• RBC’s 35th annual Financial Independence Poll shows 64% of Millennials are anxious about their financial future, with 57% having little or no money left after monthly bills.
• Only 48% of Millennials have a formal financial plan; of those, one‑third keep the plan “in their head.”
• Millennials estimate they need roughly $1 million to achieve financial independence but have saved only about one‑tenth of that amount on average.

Key Details

• Poll Highlights
• 64% anxious about future finances.
• 57% report little/no money left after paying monthly bills.
• 59% don’t feel financially secure; 44% feel financially squeezed.
• 45% have dipped into savings in the past year to stay afloat.
• Savings Targets & Reality
• Millennials believe $999 K is needed for financial independence (all generations: $813 K).
• Average amount saved so far: $126 K (all generations: $290 K).
• Financial Planning
• 48% have a financial plan; of those, 33% describe it as “in their head.”
• Only 22% have used a professional for financial advice in the past 12 months.
• Barriers to Using Financial Advisors
• “I don’t know enough and don’t want to be judged” – 44%.
• “I’m worried my finances aren’t in good shape” – 43%.
• “I don’t know where to start with financial planning” – 40%.
• “Financial advisors are just for the rich” – 40%.
• Investing Goals & Behavior
• Top goals: retire comfortably (52%), achieve financial independence (41%), build wealth (41%).
• 43% hold no investments; main reasons are fear of poor choices (56%) and lack of confidence in investing knowledge (44%).
• Willingness to Pay Fees
• 42% would pay fees if it could lead to better investment returns.

Notable Quotes

“Today's lack of affordability is a crucial challenge for Millennials at a time when they need their money to be working as hard as they are,” – Jodi Wright, Senior Director and Head, RBC Financial Planning.

“Financial Planners can help bring clarity to competing financial demands, prioritize your goals and create a clear roadmap… The real value of a plan is the clarity, momentum and direction it provides.” – Jodi Wright.