Most Canadians Do Not Use Financial Advisers

The research found the higher their household income, the more likely Canadians were to work with a financial adviser. “Professional financial advice is not something reserved for the wealthy,” advised Ammeter. “You do not just use an adviser to manage the money you’ve got; you work with an adviser to plan for the money you want.”

It appears the proof is in the pudding – 76% of those who are not retired and 80% of those who are retired said working with an adviser has helped them be more prepared for a comfortable retirement.

When it comes to funding their retirement, Canadians are overwhelmingly counting on RRSPs and government pensions as a source of income, but those currently in retirement are counting more on government programs. Canadians are also relying on employer-sponsored pensions, but many are lacking knowledge about their plans. Of those with a plan, 51% of non-retired and 45% of retired respondents did not know if their plan was defined benefit or defined contribution.

Plans for Retirement

Nearly six in 10 (58%) working Canadians plan to do paid work in retirement – more than double the 23% of current retirees who do so, according to a new survey. Further, 65% of those in the 45 to 64 year old age group planned to stay in the labor force in their later years.

The majority of working Canadians (56%) agreed they would not have enough money to live on if they stop working entirely, but that was not the only reason for staying active. Maintaining social connections and gaining new experiences also appeared to be on the minds of Canadians as they envision their retirement lifestyle. Thirty percent of survey respondents said the opportunity to stay connected with other people was a benefit of working in retirement.

Also, while Canadians on average said they think they will retire at age 61, 42% of retired respondents said they did not start thinking seriously about retirement until after age 50.

The Decima data was gathered between October 20 and October 30, 2006, through Decima eVox, the company’s large national online panel. Results are based on a sample of 2,170 Canadians.