Co-operators survey reveals that only a quarter of Canadians are confident in their ability to choose money-making investments and signals the need for financial advice
Toronto, ON (May 25, 2023) – New data reveals that younger Canadians are feeling uneasy about investing. A survey of Canadians aged 18-44 by Co-operators, a leading Canadian financial services provider, has uncovered that only a quarter (26 per cent) are confident in their ability to choose investment opportunities that will make money. At the same time, four in 10 (38 per cent) say they don’t know everything they need to know about their investing options. Nearly half (44 per cent) say they feel like they don’t have enough money to invest.
“The challenges of today’s economic climate, including high interest rates and cost of living, are intensified by the knowledge gap that exists for young Canadians,” said Emmie Fukuchi, Chief Experience Officer at Co-operators. “It is concerning that at a time when we have so much information at our fingertips, younger Canadians do not feel empowered to make investment decisions that will help them achieve their financial goals. It’s our responsibility as financial services providers to deliver credible information and engage in honest, transparent conversations about how even the smallest actions today can secure tomorrow’s future.”
Only a third (38 per cent) of those surveyed believe that their current investing habits are setting them up to be financially stable in the future. Roughly the same amount (37 per cent) say that recent stock market fluctuations have made them hesitant to invest.
“This lack of confidence and hesitancy truly underscores the need for professional and trustworthy financial advice,” said Jessica Baker, Vice President of Co-operators Advisor Network. “Regardless of how much money they have to start, young Canadians can work with a financial professional to build a financial plan that works for them and their unique financial situation.”
Those surveyed are half as likely to work with a financial advisor (26 per cent) compared to Canadians aged 55 and up (53 per cent). But of those who do work with an advisor, a majority agree that their advisor helps them feel more confident about their financial decisions (51 per cent).
The survey also uncovered additional insights about the investing habits and beliefs of Canadians aged 18-44:
- Only 26 per cent of those aged 18-44 believe their investment accounts are giving them the best possible returns.
- Only 15 per cent would rather invest in non-traditional assets like cryptocurrencies than traditional assets like stocks, bonds, or mutual funds that would be easily accessed through a financial advisor.
- A higher percentage of male respondents (40 per cent) reported feeling confident in making investment decisions that generate profits compared to female respondents (14 per cent), highlighting a difference in how each group approaches investment decisions.
“The survey results are crystal clear: financial advice is a critical tool that’s proven to help Canadians feel more confident about their financial futures,” said Jessica Baker, Vice President of Co-operators Advisor Network. “Many people feel they don’t know how to save or believe they can’t put money aside – a feeling that’s especially acute during tough economic times. The good news is, there are ways to cover basic expenses today while putting a little away for tomorrow.”
For those young Canadians unsure where to start, Co-operators offers the following tips:
- You have a right to financial advice: There are many reputable, certified financial professionals available to provide Canadians with quality advice, no matter where they are on their financial path. Whether that means starting from scratch or getting a pulse check on your current plan, every Canadian regardless of their income level or financial goals is entitled to savings and investment advice to help them build their financial literacy and close the knowledge gap that is creating anxiety surrounding their financial decisions.
- Social media is a starting point, not a solution: Compared to other generations, those aged 18-44 are more likely to get financial information from family, friends, and social media. While financial advice on social media channels can act as a conduit for young Canadians to get an initial understanding of investing, Co-operators urges Canadians to reach out to a licensed financial advisor to develop a tailored investing approach.
- Start early and invest consistently: It’s a myth that you need a lot of money to start investing. Starting early and investing on a regular basis is the best way to secure your financial future. Financial advisors can help create a tailored plan suited to an individual’s financial situation and goals.
About the Survey
The national online survey of 1,500 adult residents of Canada was conducted between January 12-16, 2023. The sample was randomly drawn from a panel of potential survey respondents (Leger Opinion). Post-stratification weights were applied to the sample based on 2016 census population parameters to ensure representation by province, age, and gender. An associated margin of error for a probability-based sample of this size would be ± 2.5 per cent, 19 times out of 20.
Co-operators is a leading Canadian financial services co-operative, offering multi-line insurance and investment products, services, and personalized advice to help Canadians build their financial strength and security. Co-operators has more than $58.2 billion in assets under administration. Co-operators has been providing trusted guidance to Canadians for the past 78 years. The organization is well known for its community involvement and its commitment to sustainability. Achieving carbon neutral equivalency in 2020, the organization is committed to net-zero emissions in its operations and investments by 2040, and 2050, respectively. Co- operators is also ranked as a Corporate Knights’ Best 50 Corporate Citizen in Canada. For more information, visit www.cooperators.ca.
Mutual funds are offered through Co-operators Financial Investment Services Inc. to Canadian residents except those in Québec and the territories. Segregated funds and annuities are administered by Co-operators Life Insurance Company. Terms and conditions apply. Please refer to cooperators.ca/mutualfunddisclosure for details.
Co-operators® is a registered trademark of The Co-operators Group Limited. © 2023 Co-operators Financial Investment Services Inc. © 2023 Co-operators Life Insurance Company.
SOURCE: The Co-operators Group LimitedTags: Co-operators, tips