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, May 25, 2023
/CNW/ - 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.
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.
About Co-operators
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, please 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 Limited