20 per cent of Canadians believe life-long financial goal has become unattainable

 

While the pandemic has wreaked havoc on Canadian businesses as well as the nation's collective mental health, it has also had a significant impact on Canadians' finances.

A recent survey from the Investment Planning Counsel found that many Canadians have had to change their financial priorities due to the pandemic.

Based on the findings, eight out of 10 Canadian investors have re-evaluated their priorities since the onset of the pandemic--50 per cent reported stability of income, short-term cash flows, and the health of their retirement savings have become more important.

Additionally, 40 per cent of respondents said they believe they will now outlive their money, 40 per cent said they are placing more importance on job stability compared to six months ago, 30 per cent are more concerned of timelines for large purchases--over $10,000--and 20 per cent have had to modify a life-long goal as they believe it has become unattainable.

Moreover, 74 per cent of respondents said, moving forward, they need to seek financial advice to become financially successful.

“Canadians have gone through a lot this year, so it’s no surprise that they are taking a hard look at their financial health and rethinking their priorities,” Chris Reynolds, president and CEO of Investment Planning Counsel, said in a news release.

“Long-term planning will always be important, but with the sudden unplanned changes to personal or family circumstances, planning cycles will become shorter.  As such, Canadians will want to engage more frequently with their advisor to reevaluate their plans and get advice," he continued.

The uncertainty of the current times has also resulted in investors seeking more frequent communication with their advisors--60 per cent said the ability to connect with their advisor through remote or virtual channels is increasingly more important.

“With the drastic shift in our environment, investors want to work with an advisor who knows their personal circumstances and they want the ability to access advice easily,” Sam Febbraro, executive vice president of Advisor Services for Investment Planning Counsel, said in the same release.

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