'Credible financial advice and education' needed more than ever, says expert
Can Canadians cover all their basic expenses in the current economic climate? For many, the answer is ‘No’, according to a recent survey.
Only a third (33 per cent) of Canadians are feeling positive about their financial situation, reports The Co-operators Group Limited.
And 45 per cent are worried their income won't keep pace with their basic expenses this year.
"The current economic climate continues to apply significant financial pressure on Canadians," says Rob Wesseling, president and CEO of 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."
A vast majority of employees say their salaries are not keeping up with the rate of inflation, according to an earlier report.
Financial planning is a key ingredient in alleviating Canadians' financial concerns, finds Co-operators’ survey of 1,500 adults, conducted between Jan. 12 and 16, 2023.
Among those who do not have a plan, one-third (33 per cent) say they would feel better about their financial situation if they had a one.
Meanwhile, of those who work with a financial advisor, a majority agree that their advisor helps them feel confident about their financial decisions (58 per cent) and worry less about their financial situation (56 per cent).
Compared to those without a financial advisor, those who subscribe to their services are:
- 42 per cent more likely to say they can cover basic expenses and set money aside for savings
- twice as likely to feel their investment habits are setting them up for future financial success
- twice as likely to feel positive about their current financial situation in general
"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," says 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."
Almost nine in 10 (88 per cent) of respondents feel more needs to be done to encourage people to save for retirement, while 60 per cent feel there is not enough public information available about pensions, according to a previous survey.