While 81% of Canadians say they have a "financial strategy", two thirds did not rely on an advisor to draft their plans.
BMO Wealth Management published the results of its inaugural Wealth Management Index on June 12. The survey is meant to provide a snapshot of Canadians' financial situations and measures their ability to manage their wealth. It considered a number of criteria beyond just how much people have saved, such as whether people have and maintain a financial plan, the level of their household debts, if they have insurance in place, as well as the status of their estate plans and the sustainability of their current financial situation.
While 81% of Canadians said they had a financial strategy and 66% said they had life insurance, the survey also revealed that 67% of respondents did not use a professional to draft their financial plan, and that only 39% and 35% had disability and critical illness coverage respectively. When asked about how well prepared they were to meet significant life changes such as getting married, the birth of a child, or job loss, 62% felt confident, while 31% said they were "not very" or "not at all" confident that they could manage.
The Wealth Management Index gave Saskatchewan the highest financial ranking among the provinces with a score of 72.9, followed by Quebec (71.1), Alberta (70.6), Newfoundland & Labrador (70.4), Nova Scotia (70.0), Ontario (69.2), Manitoba (68.4), PEI (66.7), and B.C. (66.3). New Brunswick had the lowest wealth management score in the country, with 58.9.