As part of Financial Literacy Month, advisors’ association Advocis has published a new members’ survey showing that a growing number of Canadian clients are anxious about their financial situations.
“Many households are feeling heightened financial stress and limited confidence in their ability to weather the storm,” the association states in an announcement about the survey’s results.
Their research found that 77 per cent of advisors say more than 25 per cent of their respective clients have expressed increased financial anxiety or uncertainty over the past six months. More than 90 per cent say their clients rarely or only occasionally engage in open financial conversations with family, friends and partners.
Just 1.5 per cent of advisors say their clients are very confident about their financial resilience; 34 per cent say Canadians are not confident at all.
The association also announced its new national campaign, Building Financial Resilience: Confidence in Uncertain Times. The campaign is focused on helping clients understand the effects of inflation, interest rates and global trade uncertainty on personal finances. It also focuses on emergency savings, debt management and long-term goals. “The association is calling on Canadians to take action by engaging with trusted advisors and building financial resilience,” they write.
Quoting members’ responses, the survey’s authors say clients are more conservative than ever when it comes to making long-term financial commitments due to concerns about job stability. That said, they add that while more families and business owners are feeling uncertain, they are also more motivated than ever to take control of the situation.
Regarding difficult financial conversations, however, the survey notes that only nine per cent of advisors say their clients have these discussions often. “This underscores the critical role of trusted advisors in starting those difficult but necessary financial conversations,” they conclude.
