Survey shows expert advice boosts retirement security as more Canadians seek clarity amid uncertainty
Twice as many Canadians with a professional financial plan feel confident about retiring when they want, compared to those without a plan.
This striking finding from a new KPMG in Canada survey comes at a time when economic uncertainty is prompting more Canadians to reconsider their financial futures.
The survey of 1,045 Canadians reveals that 80 percent of those with a professionally prepared financial plan say they are financially secure to retire at their desired age.
In contrast, only 36 percent of those without a plan share that confidence, while 72 percent of those who created their own plan feel prepared.
More than half of respondents (52 percent) cite economic headwinds as the main reason for seeking or revising a financial plan, and 53 percent believe a financial plan is “extremely valuable” for achieving their goals.
Despite these clear benefits, nearly half of Canadians have not sought the help of a professional financial planner.
Barriers include uncertainty about the process or its value (43 percent) and the cost of professional services (42 percent).
Less than half (44 percent) say they have a “very clear” understanding of what a financial plan entails.
Geoff Rush, partner and national industry leader for Financial Services at KPMG in Canada, notes that “many Canadians are not engaging financial planners because they think the process is too complex or costly,” and expresses concern that those who do work with a professional financial planner “are more confident about their finances and better prepared for retirement.”
He points out that the data demonstrates the significant value of engaging a financial planner to help achieve financial goals, whether it involves buying a home, making major life decisions, or preparing for retirement.
The survey also highlights shifting preferences in how Canadians want to interact with their financial planners. High net worth and mass affluent individuals favour personalized, high-level plans and annual, in-person meetings.
In contrast, mass retail investors are more likely to use digital tools and seek out their planner during major life events.
Generational differences are also apparent.
Younger Canadians, particularly those in Generation Z and Generation Y, show greater trust in technology-driven tools such as AI for basic financial planning.
Meanwhile, Baby Boomers and Generation X prefer the guidance of a human advisor.
Across all age groups, nearly three quarters (72 percent) say real-time access to their financial plans would enhance their experience.
David Bardsley, partner and national leader of KPMG in Canada’s Wealth Management practice, believes that “the future of financial planning lies in leveraging the efficiency of technology with the empathy of human interaction.”
He adds that this hybrid approach, along with Canadians’ desire for real-time access to financial information, will shape financial planning experiences for all generations.
