Canadians See Greater Need and Value in Financial Planning

A recent study from Investment Planning Council (IPC) found that almost 75% of Canadians believe they need financial planning advice to be successful in the future. The appreciation for planners is on the rise amid the uncertainty stemming from the COVID-19 pandemic. Not only are individuals leaning more on their planners, but they believe the fees they are paying are worth it.

Some of the survey’s findings included:

  • Participants said they have increased their communication with their planners since the pandemic started.
  • 93% said it was important to work with an advisor who is familiar with their personal needs
  • 75% who work with an advisor were prepared for retirement

 Chris Reynolds, the CEO of IPC noted in the report that “people want someone who knows them, their family, their unique situation and what they want to accomplish”. It is clear that “this cannot be solved by a robo-advisor or some algorithm”.

Other reports are showing similar findings, where the willingness to pay for advice has been growing and the desire of individuals to increase the amount of planning advice they are receiving.

Encouraged by the positive sentiment, planners are taking advantage to develop and deepen long-term, trusted relationships with clients that prove their worth, especially when compared to robo-advisors and other DIY investing options. Planners should look for opportunities to expand the role of truly comprehensive financial advice relationships. Planners have never been more valuable than in the midst of COVID-19, and individuals are realizing that value goes beyond simply selecting and managing investments.

 Whether it’s the technology crash of the early 2000’s or the 2008 global financial crisis, markets at times can get very volatile as they did this year with COVID. Even though the event is different, the markets reaction isn’t, and this is where a planner can offer tremendous value.