Too many Canadians have no financial plan

A recent report from Co-Operators found just one third of respondents are feeling positive about their financial situation

Too many Canadians have no financial plan
Steve Randall

Financial planning remains less prevalent in Canada than it should, with most people polled recently saying they do not have a plan.

The survey by Co-Operators discovered that almost half of participants believe their income will not keep up with the cost of basic living expenses this year.

Just one third said that they are feeling positive about their financial situation while the same percentage said that their finances would be in better shape if they had a financial plan.

"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."

Better with help

Working with a financial advisor made 58% of those that do feel confident about their financial decisions and 56% said it helped them worry less about their finances.

Those who have an FA were also 42% more likely to say they were able to meet basic expenses and set aside some savings and twice as likely to feel their investment habits are setting them up for future financial success.

"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, VP 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."