New research from Co-operators has found that the uncertain times we are living through is producing a desire for investment “quick wins” that often stray from basic financial fundamentals.
A poll commissioned by Co-operators and conducted on the Angus Reid Forum Panel surveyed financial professionals across the banking and wealth management sectors across Canada. It found that 85 per cent of advisors identified a “culture of now” as a trend that is competing against Canadians’ retirement planning needs.
“Most Canadians aren’t seeing the full potential of RRSPs and TFSAs right now, especially when their peers are pursuing ‘fast wins’ with DIY or experimental investment strategies,” says Jessie Mann, financial representative, Co-operators.
Another telling point is that 83 per cent of respondents in the Co-operators’ study said that they see a lot of people pretending to know more than they actually do about investing basics.
“It is clear that Canadians have a lot of questions about RRSPs and TFSAs, but many are reluctant to ask because of social pressure to appear financially savvy,” says Mann.
“We need to de-stigmatize these notions and reduce the obstacles they create on the path to future financial security.”
A deepening concern is rising from this social paradox with 72 per cent of financial advisors admitting they feel frustrated seeing some Canadians rush to meet the RRSP deadline while leaving other critical parts of their financial plan unattended.
And a further 93 per cent of advisors say we are just not saving enough for retirement, and believe the majority of Canadians haven’t yet maximized their opportunities with RRSP planning, TFSAs, etc.
“I think many Canadians are feeling fatigued as they weather the emotional pressures of pursuing financial security amid turbulent times, especially when they feel like they must do it all on their own,” says Vanessa Bowen, CPA and personal finance coach. She is aligned with efforts to reduce the stigma and self-judgment that often results from impulsive investing decisions.
This research underlines the need for these types of conversations and connecting with a trusted advisor to create a financial security plan. Co-operators is working to redefine the conversations around financial planning.
“Canadians deserve to have a financial plan that is personalized to their individual needs, and they should seek out an expert advisor to co-create this together,” adds Bowen.
Across Co-operators’ national network of financial representatives and investment specialists, important conversations are opening up with clients about how to prepare for unpredictable events in the future that might affect an individual’s financial goals.
“Our trusted, holistic approach to personalized service is designed to help people find their own answers to difficult questions,” says Mann. As we are asked about quick solutions, we collaborate with our clients on a comprehensive strategy that will serve them both now and long into the future.”
Co-operators, the financial foundation for Canadians for over 76 years, enters RRSP season in a robust, rebranded position with expanded services that extend from its insurance base into holistic, personalized financial advice, investments, multi-line insurance, and security.
The Guelph, Ontario-based company has more than 600 financial representatives licensed to sell mutual funds and a product catalogue of funds from nine of the best-known independent fund providers.
“It’s the nature of Co-operators’ people first approach to advice that is making an impact with Canadians this RRSP season," says Mann.
For more information about Co-operators, please visit: www.cooperators.ca.