A quarter (26 per cent) of Canadian pre-retirees and 11 per cent of retirees are using artificial intelligence for financial planning, according to a new survey by Fidelity Investments Canada.
The survey, which polled 2,000 Canadians, found the most common AI uses were getting information on investments (36 per cent), taxes (29 per cent) and budgeting (27 per cent). AI usage was highest in Ontario (22 per cent) followed by the prairies (18 per cent), B.C. (17 per cent), Quebec (15 per cent) and the Atlantic provinces (14 per cent). Notably, respondents born outside Canada (30 per cent) were twice as likely to use AI for financial planning compared to those born in Canada (16 per cent).
Nearly two-thirds (65 per cent) of respondents who use AI said they’re only “somewhat confident” in the information they receive and just five per cent of those who use AI considered it to be their most trusted source of financial information.
The top retirement worries cited by respondents include inflation (80 per cent), turmoil in world politics (60 per cent) and economic growth (60 per cent). Roughly a third of pre-retirees (31 per cent) and retirees (34 per cent) who said they’re worried about turmoil in politics said the current market environment has caused them to move at least some of their assets into more conservative investments such as guaranteed investment certificates, bonds and cash.
Only eight per cent of pre-retirees and 18 per cent of retirees reported having a detailed decumulation plan for retirement. Many retirees reported withdrawing savings on an as-needed basis rather than following a structured strategy.
Read: Editorial: Looking at the good, bad and ugly of artificial intelligence