Majority of people believe advisors help them feel more secure
As record-level inflation and affordability concerns continue, new survey results by Co-operators found that only a third of Canadians (33%) are optimistic about their financial situation, and nearly half (45%) are concerned that their income won't keep up with their basic expenses this year.
According to the report, financial planning has a significant role in allaying Canadians' financial worries. One-third (33%) of those without a plan think having one would make them feel better about their financial condition. Most financial advisor clients (58%) and those who don't worry as much about their financial status (56%), believe that their advisor helps them feel secure about their financial decisions.
"The current economic climate continues to apply significant financial pressure on Canadians," said Rob Wesseling, President and CEO at Co-operators. "With so many Canadians worrying about making ends meet and so few leveraging a financial plan to guide them, it's clear that credible financial advice and education is needed now more than ever, to empower Canadians with the solutions and support they need to navigate today's affordability challenges."
Survey results ‘crystal clear’
The poll also revealed that 42% of respondents are more likely to say they can manage basic expenses and put money aside for savings when compared to those who do not consult with a financial advisor. Furthermore, they are twice as likely to believe that their investing practices are positioning them for future financial success and twice as likely to be optimistic about their overall financial condition.
"The survey results are crystal clear: financial advice is a critical tool that's proven to help Canadians feel more confident about their financial futures," said Jessica Baker, Vice President of Co-operators Advisor Network. "Many people feel they don't know how to save or believe they can't put money aside – a feeling that's especially acute during tough economic times. The good news is, there are ways to cover basic expenses today while putting a little away for tomorrow."
For those unsure where to start, Baker advised Canadians to reach out to an advisor to help build a plan that considers their budget and needs, set savings and investing goals, and leverage an RRSP or TFSA to help them save for retirement.