Eight in 10 (80 per cent) Canadian employees with a professional financial plan say they’re able to retire at their desired age, compared to 72 per cent who created their own plan and just 36 per cent of workers who don’t have a plan, according to a new survey by KPMG in Canada.
The survey, which polled more than 1,000 employees, found more than half (52 per cent) cited economic headwinds as the key trigger in considering the need for a financial plan or revising their current financial plan, while a similar percentage (53 per cent) said a financial plan is extremely valuable for achieving their financial goals.
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Among respondents who have used a financial planner, 56 per cent said the value they get from a financial planner is worth the cost and 37 per cent said it’s somewhat worth the cost. However, 42 per cent said the cost of professional financial planning is a barrier to getting started on a financial plan.
While 44 per cent described their understanding of what a financial plan entails as very clear, 48 per cent said their understanding is somewhat clear and eight per cent said they aren’t clear on what a plan entails.
The survey also found Canadians’ attitudes towards trusting and using technology in financial planning differ by generation. Generation Z and millennials were more likely than generation X and baby boomers to put greater trust in technology-driven tools such as artificial intelligence, though a majority trust it mainly for basic financial planning. By comparison, gen X and baby boomers said they prefer to trust a human advisor for their financial planning needs.
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