Introduction to Financial Planning
Many Canadians are rethinking their financial strategy due to economic uncertainty. A survey of 1,045 Canadians found that 52% of respondents said economic uncertainty is causing them to think about creating a financial plan or revising an existing one. Having a plan is clearly beneficial, but why don’t more people do it?
The Barriers Holding Canadians Back
There are three main reasons why Canadians are not creating financial plans: cost, complexity, and confusion about what a financial plan actually is. Nearly half (45%) of survey respondents have never worked with a professional planner. The reasons for this include:
- 43% are unsure about the process or whether it is worth the money
- 42% think it is too expensive
- Only 44% have a “very clear” understanding of what a financial plan entails
The Value of Professional Planning
However, among the 55% of Canadians who have worked with a professional planner, 56% say the price was totally worth it. Another 37% said it was somewhat worth it – so that’s 93% who felt they got their money’s worth. This suggests that professional financial planning delivers measurable results.
DIY Plans vs Professional Advice
There are three groups among survey participants: 55% have a career plan, 25% have created their own, and 20% have nothing. Those who chose the do-it-yourself route feel significantly more confident than those who didn’t (72% vs. 36%), but still lag behind those who enlisted the help of a professional planner.
The Generational Divide
Age also appears to play a role in how Canadians view financial planning. The survey found that:
- 54% of Generation Z (ages 25-30) would prefer a digital self-service tool to a human advisor
- 41% of Millennials (ages 31-45) want tools and human support
- Generation X (ages 46-60) is evenly distributed across all three options
- 56% of Baby Boomers (ages 61-79) want to work exclusively with a human advisor
Common Ground
Despite these differences, all age groups agree on one thing: 72% want real-time access to their financial plans and say it would improve their experience.
The End Result
The survey data seems convincing: professional financial planning delivers measurable results. But at the end of the day, a plan is better than no plan. If cost or complexity is holding you back – or you simply prefer to use online tools to do things yourself – try creating your own plan. You can always contact a financial advisor for feedback and suggestions that will boost your confidence and ensure you are on the right path to a comfortable retirement.
Conclusion
In conclusion, financial planning is an important step in securing your financial future. While there may be barriers to creating a plan, the benefits of professional planning are clear. Whether you choose to work with a professional or create your own plan, the key is to take action and start planning for your future. With the right plan in place, you can achieve your financial goals and enjoy a comfortable retirement.