Financial advisors are increasingly important in today’s culture and play a vital role in improving Canada’s economy says the Conference Board of Canada.
"By helping individuals have the discipline to save more of their income, a financial advisor is able to increase savings rates. Higher savings will help Canadians generate adequate retirement income and increase the funds available to reinvest in the economy," says Deputy Chief Economist Pedro Antunes.
A report published by the board earlier today confirmed that people who work with financial advisors are more likely to save greater amounts and prepare better for retirement which, in turn, increases economic potential.
The report also speculated that if just 10% of today’s financially unadvised individuals turned to professional advisors for help, Canada’s economy could see a sizeable boost of more than $2 billion by 2060.
The board predicts that, initially, GDP would be lower for the first few years of the forecast as a higher rate of savings cuts into consumption but real GDP impacts are positive in the long term, thanks to increased investment.
Antunes has emphasized Canada’s dire need for financial advice and said: "The financial readiness of Canadians entering retirement is worrying, given evidence that suggests many individuals are not saving enough for their future after they leave the workforce.”
It’s encouraging to see advisors recognized for their invaluable contribution which can so often be overlooked. Hopefully, the industry will soon see a more wide-spread awareness around the importance of guided investment and appropriate planning.