Lack of confidence hinders retirement planningBy Alain Thériault | August 17 2012 08:30PM
Lack of confidence in advisors and financial institutions is dampening many Canadians’ enthusiasm for retirement planning. In contrast, people who trust their advisor and institution tend to take planning seriously.
These are the main conclusions of an online survey done by Desjardins Financial Security (DFS) between Nov. 14 and 27, 2011, involving 2,000 respondents.
“This widespread lack of trust in financial institutions and advisors is not surprising, given the financial market instability of the last several years,” said André Langlois, vice-president marketing and product development, Individual Insurance and Savings at Desjardins. “But by allowing this skepticism to create such profound disengagement, these respondents are putting their futures in jeopardy.”
Survey respondents with the lowest levels of confidence in financial advisors:
■ are more confused by retirement planning, at 60.7%, compared with only 28.4% of those with the highest level of confidence
■ find retirement planning more difficult, at 60.8%, versus only 26.4% of those at the highest level
■ are less likely to say they are engaged in their retirement planning, at 56.5%, as opposed to 92% of those at the highest level
■ are much less confident that they will make enough money to live comfortably during retirement, at only 39.7%, compared with 75.5% of those at the highest level
■ are less likely to regularly consume news and information about retirement planning, at 41.0%, versus to 65.4% of those at the highest level
■ are less likely to say that their personal financial security is excellent, good or very good, at 46.5% compared with 83% of those at the highest level.