Canada graduates upbeat despite debt & cost pressures

Securian Canada has published research showing that recent graduates in Canada remain optimistic about their financial future, even as many have limited savings and face debt and affordability pressures.

The study found that 78% of recent graduates were optimistic about their financial future, including 23% who described themselves as optimistic and confident and 55% who said they were uncertain but hopeful.

Graduates also expressed confidence in the value of their education. Nearly three-quarters, or 73%, said their post-secondary education had set them up for a better financial future, rising to 78% among those working in a career-path role.

Employment was relatively high among respondents, with 81% saying they were employed, including 64% in full-time work and 17% in part-time roles.

But progress in the job market did not always translate into a financial buffer. The report found that 45% of recent graduates could cover less than three months of basic expenses if their income stopped, while 40% said they were struggling financially or just managing.

Debt burden

Debt remained common. The research found that 78% of recent graduates carried some form of debt, including credit card balances for 42% and student loans for 33%.

Cost pressures were still affecting those several years into working life. Among respondents who had graduated three to five years earlier, 47% said they had difficulty covering housing and student loan costs.

Those financial constraints were also linked to delayed life decisions. More than half, or 52%, said they were putting off homeownership, while 29% were delaying marriage or long-term relationships and 28% were delaying having a child.

The findings suggest that graduates may feel financially independent while still relying on outside support in some cases. Nearly two-thirds, or 61%, said they were the sole financial decision-maker in their household, while 59% of those whose education had been funded by family said they still relied on that support at least occasionally.

Even so, most respondents said their behaviour matched their financial aims. The survey found that 85% believed their financial habits aligned with their goals at least to some extent, and 59% said they were able to set money aside each month.

Protection gap

The research also pointed to gaps in insurance ownership and understanding of financial protection. One in five recent graduates, or 20%, said they did not hold any of the following: life insurance, health and dental insurance, critical illness insurance, creditor insurance or balance protection insurance.

Only 25% associated financial protection with insurance. By contrast, 31% mainly associated it with savings or government programmes, while 18% said they were unsure what the term meant or what they should associate it with.

The survey was commissioned by Securian Canada and conducted by Angus Reid Group among 2,277 adults in Canada. It included an oversample of younger adults, with 1,017 recent graduates and 620 other young adults, to allow comparisons across age and graduate groups.

Nigel Branker, Chief Executive Officer of Securian Canada, said the findings showed a mixed picture for people entering the labour market after study.

"Canada's recent graduates are entering the next stage of their lives with ambition and a clear desire to build a secure future," Branker said.

"At the same time, they are navigating financial pressures that are shaping how they define career progress and success."

He said the report drew a distinction between optimism and resilience.

"It's reassuring to see that recent graduates are optimistic about their future, but that doesn't necessarily mean they're on a path to long-term financial security," Branker said.

He added that rising living costs and delayed life milestones were shaping demand for protection products.

"The pressures recent graduates face with increased costs of living and the need to delay major life milestones reinforce the need for simpler and more accessible insurance solutions that will help keep them on track to meet their financial, professional and personal goals," Branker said.