Thirty-nine per cent of Canadians feel they don’t have their financial future under control, while 29 per cent say they are overwhelmed with their financial options, according to a new study commissioned by the Financial Planning Standards Council released Oct. 17.
“The results of the FPSC survey bring to light the emotional side to personal finances and a need for vigilance when it comes to being informed,” said author, personal finance educator and FPSC’s Consumer Advocate, Kelley Keehn. “A great number of Canadians lack clarity in terms of preparing financially for the next chapter of their lives.”
Long-term financial goals
The survey posed a series of scenarios to Canadians age 18 and older regarding their financial future, current understanding of their finances and their use of outside resources to clear the confusion when it comes to personal finances. According to the results of the FPSC study, 39 per cent of Canadians admit they are unclear of their long-term financial goals, and almost half of Canadians (49 per cent) do not know how much they need to save for their retirement.
The survey also showed that nearly one-in-five Canadians (18 per cent) believe that they do not need an emergency fund, while 15 per cent use credit without understanding the long-term consequences.
Financial planning is critical
“People can often get paralyzed by all the information available – to the extent that they just shut their minds off,” said Keehn, who recommends consulting a Certified Financial Planner who “can open your mind to what is possible and get you moving in the right direction.”
To learn more, consult the full survey results here.