Canadians Worry About Personal Finances
March 15, 2023
People worry about retirement and investments, writes Peter Watson.
Canadians are concerned about their ability to fund retirement and they have negative feelings towards their investments.
There are many reasons creating this pessimism, including Covid, higher interest rates, and everything seems to be more expensive. Plus, personal debt levels continue to rise.
According to a recent survey by Scotiabank, over half of Canadians said their retirement plans have been impacted by the current economic conditions. Our observation is preparing for a financially secure retirement is the most important financial objective for most people.
Also, according to the survey, almost 6 out of every 10 respondents said they have negative feelings towards their investments. In the fall of 2021, only about three out of every 10 people had negative feelings about their investments.
The key to dealing with financial concerns Is getting investment advice and having a financial plan.
The survey found that 86 per cent of respondents were confident in their ability to retire if they had met their advisor within the last six months. The level of confidence increased to 95 per cent when they had a written financial plan.
Dealing with personal financial issues and managing investments is a challenge. Like other challenges people have during their lifetime, including what education to pursue as a young adult and then how to continually upgrade your skills in later years.
Career choices require decisions, the type of accommodation you choose, including whether to rent or purchase. Life is full of challenges.
Have a plan, speak with your advisor and you are likely to feel more positive about the future.
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com