Can you manage this big client expectation?

As an advisor, you’re likely adept at managing client expectations. When it comes to salary, some clients’ expectations could be particularly outsized.

In an Edward Jones poll about salary expectations, Canadians said they need an average pre-tax salary of $250,000 to feel financially comfortable. That figure stands in stark contrast to the median after-tax salary of $56,000 for Canadian families and single people reported by StatsCan (2015).

Expectations further increased when respondents were asked to put a price tag on the lifestyle they truly desire. To live that life, most poll respondents added another $50,000 to their ideal pre-tax salary, bringing the total to $300,000, says a release.

Though expectations were high across the board, younger Canadians had the lowest expectations, saying they’d need about $167,000 pre-tax to feel financially comfortable. Those aged 35-54 said they’d need more—about $227,000, perhaps due to family costs.

The greatest pre-tax salary to feel comfortable was cited by those aged 55-65, at about $398,000. Yet, when asked how much they needed for their ideal lifestyle, the figure dropped to about $325,000, potentially indicating that this age group is saddled with unwanted financial responsibilities, says the release.

Regardless of the ideal salary they think they need, clients might require help setting goals and better understanding the concept of financial security—something that will likely change as they age.

“The research indicates that financial expectations and needs are continuously evolving through different stages of life,” said Patrick French, principal of solutions tools and consulting at Edward Jones, in the release. “Having a clear view of your goals and understanding how one financially influences the other is the first step towards achieving your lifestyle objectives.”

About the poll: Leger conducted the online survey of 1,565 Canadians aged 18 and older between May 23-26, 2017.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.