IG Wealth Management Study: COVID-19 Causing Canadians to Re-examine Their Approach to Financial Planning
WINNIPEG, December 14, 2020 – As the year draws to a close, IG Wealth Management (IG) today released the results of a study that shows Canadians are placing more emphasis on financial planning as they navigate the economic disruption caused by the global pandemic.
According to the study, conducted by Pollara Strategic Insights for IG, almost half (45 per cent) of Canadians who don’t currently have a financial plan are now considering putting one in place. Further, 46 per cent of respondents who currently have a financial plan are proactively making changes to them to be better prepared to face whatever may come next.
Driving this renewed interest in financial planning is the negative impact COVID-19 has had on Canadians’ knowledge of their financial well-being around several dimensions:
- Just 27 per cent feel they are managing debt effectively;
- 25 per cent create and stick to a budget;
- 22 per cent feel they have the right insurance in place to protect them/their family;
- 20 per cent are optimistic about their ability to save for future expenditures; and
- less than half feel they have the right retirement investing approach and tax strategies in place.
As a result, just 21 per cent of Canadians reported having a good awareness of their overall level of financial well-being.
“Given all that’s happened this year, it’s not surprising that Canadians are re-evaluating their finances,” said Damon Murchison, President & CEO, IG Wealth Management. “However, it’s encouraging to see so many being proactive and appreciating the important role a financial plan can play in preparing for the future and helping achieve both short- and long-term goals.”
Financial Planning: It All Starts with Getting a Sense of Your Overall Financial Well-Being
Mr. Murchison noted that a good first step to get back on track is to get a holistic sense of your financial well-being. “Examining your investing strategy, cash flow and daily spending is important, but Canadians should also consider insurance, estate planning, emergency funds, retirement savings, planning for major expenditures, and more.”
Resources like the IG Living Plan Snapshot™ (Snapshot) can often be helpful during times like these. Introduced in October 2019, Snapshot is an online resource that provides Canadians with an indication of their financial well-being in less than 15 minutes. Specifically designed for Canadians who do not yet have a comprehensive financial plan or who feel that their existing plan does not take into consideration all of the dimensions of their financial life, it guides an individual through a series of questions and provides a result based on their responses.
To develop a comprehensive financial plan, Mr. Murchison recommended working with a professional. “Making informed financial decisions requires support. A financial professional’s experience and training can be invaluable, whether you’re trying to develop the right tax strategy, ensuring you have enough savings to achieve your goals or be better prepared for whatever the future may hold,” Mr. Murchison continued.
“No one could have predicted the events of this year, but it is possible to be financially prepared for the unexpected through comprehensive planning.”
About IG Wealth Management
Founded in 1926, IG Wealth Management is a national leader in delivering personalized financial solutions to Canadians through a network of Consultants located across Canada. In addition to an exclusive family of mutual funds and other investment vehicles, IG offers a wide range of other financial services. IG Wealth Management has over $101 billion in assets under management as of November 30, 2020 and is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's leading diversified wealth and asset management companies with approximately $205 billion in total assets under management as of November 30, 2020.
About the Pollara Study
This study was conducted with an online sample of 1,508 adult Canadians and was conducted from October 22 to 25, 2020. Results from a probability sample of this size could be considered accurate to within ±2.5 percentage points, 19 times out of 20. Results have been weighted based on age, gender and region to be representative of the Canadians population. Where applicable, results are being compared to a study of 1,531 Canadians which was completed between October 2 and 3, 2019.