Half of high income Canadians are not as wealthy as they expected to be at this stage of their life, according to an Ipsos survey sponsored by RBC Wealth Management.
"Regardless of income, many Canadians find themselves behind on their wealth goals as many of the traditional ways we build wealth have changed over the generations," says Tony Maiorino, Head, RBC Wealth Management Services. "With the added backdrop of market uncertainty, clients are voicing their concerns and looking for support using non-traditional methods of meeting their wealth goals."
Rising cost of living
Three quarters of respondents say building wealth is more difficult than in previous generations, with respondents in Ontario and Alberta most likely to agree (81 and 80 per cent respectively) and those in Quebec (66 per cent) least likely to agree. Most respondents attributed this to the rising cost of living (60 per cent) and unexpected expenses (51 per cent).
Despite not being as wealthy as they’d expected, most respondents say they believe they will meet their goal before retirement.
However, almost 8 in 10 respondents say they find it challenging to know both which information to trust and to stay on top of what's happening in the financial markets, and three quarters say they value the expertise of a financial expert.
"Things like tax strategies, insurance and retirement planning play a key role in building wealth today but I'm not surprised that so many respondents find them challenging. The financial landscape is always evolving and people have less time to research and learn about wealth management topics," says Howard Kabot, vice president, financial planning, RBC Wealth Management Services. "Most clients need to explore a variety of tactics through a holistic lens to build and preserve wealth."