Most Canadians don’t use financial planners: survey

Almost two-thirds of Canadians don’t use financial planners (65%), mainly because they feel their portfolios are too small, finds a survey from the Financial Planning Standards Council. That reason was cited by half of respondents without planners.

The proportion of Canadians without financial planners is highest in Atlantic Canada (76%) and Quebec (73%)—the only province where financial planner is a regulated title. Relative to those in other provinces, more Quebec respondents cited small portfolios as a reason why they don’t use financial planners.

Across the country, other reasons for not using planners include not knowing who to trust (22%), being too confused and overwhelmed to consider the matter (20%) and embarrassment about finances (19%). Quebec respondents were least likely to cite they were confused and overwhelmed.

The survey was conducted in advance of Financial Planning Week (Nov. 18 to 24) and Financial Literacy Month in November. Other survey highlights:

• 33% doubt their bank accounts could withstand a financial emergency;
• 28% aren’t confident they can achieve their financial goals;
• 62% rarely or never maximize RRSP contributions; and
• 64% don’t have access to employer-matching retirement savings programs.

For full details, read the survey here.

Methodology: Leger conducted the survey of 1,527 Canadians online between Sept. 28 and Oct. 1, 2018, using its online panel, LegerWeb. The margin of error is +/-2.5%, 19 times out of 20. 

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