Scotia's fourth annual Worry Poll also reveals emotional benefit of working with an advisor
The present economic climate is making Canadian investors nervous about their retirement plans. Growing inflation, interest rates, and stock market volatility are putting pressure on Canadians' assets, but expert guidance and a financial plan bring investors a big confidence boost.
Canadians are more worried about their finances this year than they were previously, according to Scotiabank's fourth annual Worry Poll. In line with this, the recent Scotia Global Asset Management Investor Sentiment survey reveals that 55% of respondents believe the present economic situation has had an influence on their retirement plans. Compared to the fall 2021 study, 33% of those surveyed (almost 6 in 10) have negative feelings about their assets.
According to the Investment Sentiment survey, 86% of respondents who have spoken with their advisor in the past six months feel confident about their ability to save for retirement. The percentage of people feeling secure increases to 95% when they meet with an advisor and have a financial plan. Yet just 26% of those polled reported having a documented financial plan.
"These results indicate that investors have current concerns about meeting their retirement goals; however, regular meetings with financial advisors and having a written financial plan diminish those concerns," said Neal Kerr, Head, Scotia Global Asset Management. "Our focus – to enrich our clients' financial futures with outstanding investment solutions delivered in partnership with comprehensive wealth advice – becomes even more important during challenging market conditions, as the survey results attest,” he added.
Advisors can enhance their clients' overall financial well-being and help them develop financial confidence in several ways. CIBC Financial and Investment Advising vice president Carissa Lucreziano advised beginning by setting up time in a meeting for financial education.
She emphasized that advisors should not downplay the value of giving advice on budgeting and investing. Although these are subjects advisors may discuss every day, a meeting with their advisor may be the only chance a client has to discuss these issues all year.
Providing clients with the right planning tools, according to Lucreziano, is another method to make them feel like they have more control over their finances. Getting customers used to using digital tools and giving them advice, resources, and advice on effective money management techniques "can make a world of difference."
According to Lucreziano, advisors can assist clients achieve their long-term goals by breaking them down into more manageable, shorter-term objectives.
“When clients see real progress towards their goals, it helps build trust in the advice that you provide them,” she said. “This can help clients see the possibilities that are within reach for their future and help motivate them to stick to their plan.”
