New survey results released today by Co-operators find that only a third of Canadians (33 per cent) are feeling positive about their financial situation. As record level inflation and affordability challenges persist, almost half (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,” 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.”
The survey found that financial planning is a key ingredient in alleviating Canadians’ financial concerns. 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. 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).
The survey also found that, those who do work with a Financial Advisor, when compared to those who do not, are:
- Forty-two 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,” 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 offers the following tips to Canadians:
- Reach out to an advisor. Speaking to a licensed Financial Advisor is the first step to feeling better about your finances. A Financial Advisor can help you build a plan that considers your budget and needs.
- Set your savings and investing goals. Saving and investing can start with any amount of money. Whether it’s your first home, an emergency fund, or a dream vacation, having tangible goals can help you create a financial plan that works for you.
- Leverage an RRSP or TFSA. Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) do more than help Canadians save for retirement. No matter when you start, money contributed to an RRSP or TFSA can help you pay less income tax, enjoy tax-deferred investment growth, and benefit from compound interest.