A recent Nielsen investor survey commissioned by mutual fund company AGF finds what many advisors realize in their practice every day: Many Canadians are concerned they have not saved enough for retirement. Of those who have, more than six in ten have not taken measures to protect their portfolio against the potential of rising interest rates.
According to the survey the numbers suggest an opportunity for increased engagement between investors and their advisors.
Conducted in February 2014, the survey polled 1001 Canadians 35-years and older. Those surveyed also had at least $25,000 in investible assets. According to the numbers, 69% of Canadians are concerned that they have not saved enough for retiremen, 59% are concerned about the effect rising rates may have on their investment portfolio, but have done nothing to protect their portfolio as they are not sure what to do
"What this survey shows is that a growing number of Canadians recognize these as important issues and want to address them," said Blake Goldring, chairman and CEO of AGF Management Limited. "Financial literacy and financial advice are the best tools to employ in these circumstances and these survey results indicate that Canadians recognize the value of both."
When asked if they were on track to meet retirement goals only one in ten indicated they were confident they will reach their retirement goals. Even so, more than half believe they need to 'stay the course' and continue with their current investment strategy. On average, Canadians believe they lost between 10% and 50% of their investment portfolio as a result of the market slide of 2008. One in five were unable to indicate exactly how much they lost. When it comes to current investing strategies 56% of Canadians are concerned about the impact of rising interest rates on their portfolio, but three-in-five (59%) claim they do not know what to do about it. The suggestion is that there is an opportunity for advisors to connect with thier clients.
Also in the survey: Three out of five Canadians have a financial advisor. Three quarters of Canadians believe their advisor is important in helping make investment decisions. As age rises, so does the belief that financial advisors are important.
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