Financial Health and Resilience Index Development Methodology
Seymour Financial Resilience Index ®
Index Development Methodology
- The Financial Health and Resilience Index Model, Seymour Financial Resilience Index ® is a proprietary regression model developed based on an iterative process to regressing and evaluating over 35 potential indicators against self-reported 'financial health’ ‘financial resilience’ and ‘financial stress’ measures, using the multiple linear regression technique.
- In the end, nine variables were determined to account for 66 percent of the variance in the financial health and resilience construct as of February 2026. They accounted for 66 percent of the variable in the financial resilience October 2025; 65 per cent as of June 2025; 66 per cent as of February 2025 and 67 per cent of the variance in the financial resilience construct as of October 2024. They account for 60 per cent as of October 2023; 63 percent in June 2023; 62 percent as of February 2023 and June 2022.64 percent of the variance in the financial resilience construct as of February 2021.
- The regression model indicators (independent variables) are significant at a 95% confidence interval, with p-values less than 0.05.
- The model builds on over ten years of longitudinal national Financial Well-Being Studies data. The Index has been validated against all years of Financial Well-being studies data between 2017 and 2026 and through studies and analytics for FI clients, government and partners. This has revealed consistency in results, represented by a strong R-squared and similar weights of the independent variables as predictors of household financial health and resilience.
- Weightings for the model are dynamic, unequal and based on their overall contribution to the dependent variable in the model.
- There were five stages of Index development and validation:
- Identification of potential indicators in line with the Financial Well-Being Framework;
- Data collection for Index development;
- Regression model development with different combinations of potential indicators;
- Indicator selection and
- Model validation using the multiple linear regression model technique.
- Based on 2017 and 2018 data, six of the nine index model independent variables were available. For the the 2019 data, seven of the independent variables were available. All nine variables were available based on the February 2020 Index baseline data.
- In July 2022, one of the two variables within the debt composite indicator was replaced. Eight of the nine unchanged indicators have been consistently used since the Index as created. These eight indicators accounted for 93% of the predictability of household financial resilience construct as of February 2023 and 90% of the predictability of household financial resilience construct as of June 2022.
- During the Covid-19 pandemic, the Index was released three times a year to capture changes in households’ financial resilience and behaviors during one of the greatest economic shocks in history, with Index tracking in February 2020, June 2020, October 2020, February 2021 and June 2021 during this period.
- In 2021 we developed a joint report on the financial resilience and financial well-being of Canadians published with Statistics Canada, following a peer-review of the Index and comparison of Index reported data against government administrative data. The Index has been peer-reviewed and used by many other leading organizations since this time.
Why we created the Financial Health and Resilience Index Model
Measuring households' financial vulnerability
Since the first Financial Well-Being study launched in 2017, it has been clear that financial stress, and financial vulnerability are mainstream issues in Canada, with 74% of the population not ‘Financial Resilient’ and 22% of households having a liquid savings buffer of less than three weeks as of February 2026. Financial vulnerability and hardship are much more significant for more vulnerable and underserved populations, with many knock-on effects impacting the health, personal well-being and lives of Canadians.
The Index complements Financial Well-Being Studies Instrument
The Financial health and Resilience Index Model complements the Institute’s national Financial Well-Being Studies, conducted triannually in February, June, and October, with the first study launched in 2017.
Tailored Studies for Clients and Partners
The Institute designs and conducts Financial Well-Being Studies for clients or partners based on their unique research or policy objectives. These studies launch alongside the national study to provide benchmark data and Index analytics.
National
The Index measures’ households’ financial resilience, and the mean financial resilience score for Canada, with the Canada mean financial resilience at the national level 55.67 based on the June 2021 Seymour Financial Resilience Index®. This means that at the national level, Canadians are “Approaching Resilience”.Provincial
Financial resilience measurement, analytics and tracking is available at a provincial level for comparative purposes. Provincial comparisons allow for national organizations to see provincial disparities within their markets and client bases.Segment
Financial resilience and financial stress, health and well-being measurement, analytics and tracking is available for many consumer segments and sub-segments. These include for example: Millennial renters; Indigenous Canadians; tier-one bank customer mortgage holders with good or fair self-reported credit scores and others. This allows organizations to understand the financial resilience of their target customers and prospects with multiple applications.Organization
Financial resilience measurement and analytics is available for tier one Canadian banks and other organizations, enabling long-term impact measurement and customized financial resilience (and vulnerability) scoring at the organizational, portfolio or segment level for their organization. Customized studies and boost samples enable all types of organizations to measure their customers, employees or communities’ financial resilience and track this over time.Individual Household
Financial resilience scoring and analytics is available for individual households, existing or prospective customers. Contextualized scores and analytics provided against the Index and longitudinal benchmark data with customized solutions and applications for organizations based on their needs. Contact us for more information if this is of interest for your organization.