The study found that, while 61% of Canadians reported having a financial plan, most said it focused almost exclusively on their investments. The study also showed that almost three-quarters of Canadians who use a financial advisor and say they have a plan reported that the plan focuses exclusively on investment.
“That means a lot of them are working with a financial advisor, but all they’re getting is possibly some investment advice and not a holistic approach to ensure that they, and their loved ones, are taken care of,” said Courcelles.
If that’s all they’re getting, they may not have a will and power of attorney or the right life, disability, or critical illness insurance. They may not be minimizing their taxes or budgeting to live within their means and manage their debt. They may also not be planning sufficiently to meet their retirement goals or, if they run a business, ensuring that they’re meeting both their personal and business needs.
The study, which Pollara Strategic Insights conducted for IG, surveyed 1503 Canadians from across the country online in mid-September. It also showed that only one-third of the Canadians surveyed had a good understanding of what a financial plan was and those with a holistic plan were three times more confident that they’d reach their goals.
IG released the results to increase awareness.
