Most Canadians are confident they’ll afford life milestones – but many still put them off

However, long-term confidence doesn’t mean Canadians will remain unaffected by the present economic environment. While 68% said they’re confident they are going to ultimately achieve their milestones, greater than half (51%) said they’re currently pushing aside at the very least one essential financial goal.

How can Canadians ensure they achieve the milestones they plan for? The FP Canada survey shows a There is a large trust gap between those that currently work with a financial planner and people who don’t. Of those that work with a financial planner, 79% say they’re confident of their goals, in comparison with just 59% of those without skilled advice.

Laura Bishop, Qualified Associate Financial Planner (QAFP) at IG Wealth Management, says financial planners might help Canadians of all ages and income levels prepare for all times milestones with the assistance of an authority who knows the market in and out. “It’s not just for the rich,” she says. “It’s for anyone who wants to make conscious decisions about their money.”

The biggest challenges to Canadians’ financial plans arise from every day life

The top challenges Canadians face when planning for his or her life milestones include paying off debt (31%) and general economic uncertainty (35%).

But the most important challenge of all? For 41% of Canadians, there just isn’t enough left over after their essential expenses are paid. Among survey respondents ages 35 to 54, nearly half (48%) said this was their biggest challenge.

In other words, it is not just wide swings in economic uncertainty or individual debt burdens which can be affecting some Canadians’ financial confidence. For many Canadians Daily life is simply too expensive to implement big financial plans in the intervening time.

The planning divide between generations: Travel is a top priority for Generation Z

The top three life milestones Canadians are saving for today include retirement or semi-retirement (50%), travel (42%) and buying a house (19%). But for younger Canadians, travel is top of mind, while more traditional goals like retirement and residential ownership take a back seat.

These are the important thing milestones for Canadians aged 18 to 34:

• 43% save on travel
• Save 38% to purchase a house
• 34% save for retirement

Compare these to the important thing milestones for the 35-54 age group:

The article continues below promoting

• 61% are saving for retirement
• 47% save for travel
• Save 25% for his or her kid’s education

Applies to each age groups Travel is an enormous financial priority, even exceeding goals like retirement, home ownership and education.

A free-spending mindset

According to Bishop, Canadians’ love of travel is not any coincidence. She links this to the COVID-19 pandemic, noting that since 2020, many Canadians have moved beyond specializing in long-term savings goals and are also incorporating short-term spending into their financial priorities.

“Since COVID,” she says, “a lot more people are striving to live their best lives.”

“It’s about clarity”: How working with a financial planner can construct confidence around money

Bishop doesn’t want Canadians to delay working with a financial planner out of unwarranted fear that they will lose control of their funds – or because they consider it’s only a service for the very wealthy.

Anyone can work with a financial planner, she says, and young people particularly can profit from the financial education and insight they supply. “It’s not about giving up control, it’s about gaining clarity.”

For Bishop, being a financial planner is about greater than just expertise in markets or investment strategies. “Money is an emotional conversation,” she says. Many people, especially those that are unsure of their financial goals, don’t tell even their closest friends about their financial situation – but Bishop has these honest, open conversations together with her clients day-after-day.

“A good planner helps clarify and simplify complex decisions,” says Bishop. “A great planner will align these decisions with your priorities and goals and create a personalized plan for you.”

Read more about financial planning:

About RE Hawley

RE Hawley is a senior author and editor with over a decade of combined experience in education and insurance. RE is committed to creating accessible content on complex financial topics that individuals can use to make informed decisions.