Data from Co-operators finds majority of
Canadians have no financial plan and nearly half worry about
covering basic expenses
TORONTO, Feb. 15,
2023 /CNW/ - 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.
Co-operators survey finds majority of
Canadians have no financial plan & nearly half worry about
covering basic expenses
"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.
About the Survey
The national online survey of 1,500 adult residents of
Canada was conducted between
January 12-16, 2023. The sample was
randomly drawn from a panel of potential survey respondents (Leger
Opinion). Post-stratification weights were applied to the sample
based on 2016 census population parameters to ensure representation
by province, age, and gender. An associated margin of error for a
probability-based sample of this size would be ± 2.5 per cent, 19
times out of 20.
About Co-operators
Co-operators is a leading Canadian financial services
co-operative, offering multi-line insurance and investment
products, services, and personalized advice to help Canadians build
their financial strength and security. The company has more than
$61.5 billion in assets under
administration. Co-operators has been providing trusted guidance to
Canadians for the past 76 years. The organization is well known for
its community involvement and its commitment to sustainability.
Achieving carbon neutral equivalency in 2020, the organization is
committed to net-zero emissions in its operations and investments
by 2040, and 2050, respectively. Co-operators is also ranked as a
Corporate Knights' Best 50 Corporate Citizen in
Canada. For more information,
please visit: www.cooperators.ca.
Mutual funds are offered through Co-operators Financial
Investment Services Inc. to Canadian residents except those in
Québec and the territories. Segregated funds and annuities are
administered by Co-operators Life Insurance Company. Terms and
conditions apply. Please refer to
cooperators.ca/mutualfunddisclosure for details.
Co-operators® is a registered trademark of The Co-operators
Group Limited. © 2023 Co-operators Financial Investment Services
Inc. © 2023 Co-operators Life Insurance Company.
SOURCE The Co-operators Group Limited