Majority of Canadians navigate financial planning alone – survey (2024)

A new survey conducted by CIBC and FP Canada™ has found that only 25 percent of Canadians work with a financial advisor and 30 percent don’t have a financial plan at all.

Individuals under 35 years old are more likely to admit that they don’t have a financial plan but express their desire for one (25 percent), compared to their older counterparts (12 percent). Moreover, 46 percent of respondents report updating their financial plan within the last year.

The survey also found that 46 percent of respondents are interested in receiving retirement advice from a financial professional. However, only 30 percent have actually worked with a professional on building a financial plan, 29 percent on an investment plan, and 28 percent on a retirement plan.

“Working with a financial professional to develop a personalized, financial plan that takes into account your short and long-term goals can help you make more informed financial decisions and, ultimately, make your ambitions a reality,” says Carissa Lucreziano, vice-president, financial and investment advice at CIBC.

The survey found that Canadians have different definitions of what a financial plan is, with 54 percent viewing it as a detailed plan involving long- and short-term investment products. Additionally, 51 percent define it as a comprehensive strategy of one's financial circ*mstances, goals, and the means to achieve them.

When it comes to receiving advice about retirement, 46 percent of Canadians express interest, but one-third identify cost as the primary barrier. Younger Canadians (those under 35 years old) are more likely to cite cost as a significant obstacle.

Tashia Batstone, president and CEO of FP Canada, underscores the importance of partnering with a professional financial planner for Canadians' financial wellbeing.

“Developing and implementing a plan pays dividends because it ensures your financial goals are articulated and that you're implementing strategies to achieve them. Financial planners provide an important service to Canadians of all income levels and demographics, ultimately helping them achieve financial health,” says Batstone.

The survey also determined the top criteria for selecting a financial advisor, according to Canadians, including credentials/educational background (38 percent), investment performance (35 percent), referrals (35 percent), and competitive fees (33 percent).