Many Canadians are not saving for their retirement and 62% are not currently using a financial advisor.
According to BlackRock's most recent Global Investor Pulse Survey, only 52% of people between the ages of 25 and 34 are saving for their retirement. The proportion of savers does increase with age, but it is by no means universal: the poll found that 60% of those age 35 to 44 are saving, while 66% of those between 45 and 54 are setting money aside. The percentage of retirement savings drops back down to 60% for those aged 55 to 65.
Overall, the survey of more than 2000 people revealed that 40% of Canadians have no retirement savings at all. Broken down by age group, 48% of 25-34 year olds are without retirement savings, while 40% of those aged 55-64 do not have anything set aside.
The survey also showed that most Canadians are not using a financial advisor; only 38% of the respondents said they currently use a financial advisor, while 21% say they have used one in the past, and 41% indicated that they have never sought professional advice. Is this because they have figured things out on their own? Apparently not, since 58% admitted that they do not fully understand how much they need to save for their retirement.
There are not, however, many things that would prompt people to meet with an advisor. Asked what would encourage them to do seek out professional financial advice (they could give more than one answer), the top five answers were receiving an inheritance (cited by 30%) buying an investment property (18%), starting a business (17%), retiring from work (16%), and buying their own home (14%).
"With the exception of receiving an inheritance, only a small minority of Canadians, when presented with a list of life events, felt that these would prompt them to seek investment guidance," reads the report.