- More than half of Canadians (57 per cent) believe that tax planning should be a year-round consideration.
- However, only 27 per cent make it a priority throughout the year.
- Just one-third (33 per cent) are very confident that they are taking advantage of all possible tax breaks.
WINNIPEG, MB, March 21, 2024 /CNW/ - According to IG Wealth Management's (IG) annual tax study, more than half of Canadians (57 per cent) appreciate the importance of year-round tax planning. However, few prioritize it and could be leaving their hard-earned money on the table this year.
The study, conducted in partnership with Pollara Strategic Insights, found that:
- Only 27 per cent of Canadians make tax planning a year-round priority.
- Just one-third (33 per cent) are very confident that they are taking advantage of all possible tax breaks.
- Seventeen per cent are very knowledgeable about how certain life stages or events can bring new tax issues.
"Canadians can benefit from year-round tax planning that ideally should be wrapped into their overall financial plan," said Damon Murchison, President and CEO at IG Wealth Management. "Prioritizing tax planning outside of tax season alone can help lessen your tax bill, maximize available tax credits and deductions, and ultimately, allow you to build and keep more of your wealth."
Understanding Tax Implications
The study also examined the often-overlooked tax implications of major purchases. When making a major purchase, including buying a home, secondary property, car, or investing in home renovations, only one-third of Canadians reported that they factored in the tax implications in advance of the purchase. Similarly, even fewer Canadians (17 per cent) are very knowledgeable of how certain life stages or events, including getting married, having children, retiring or passing on their estate, can bring new tax issues.
"It's a concern that many lack understanding of the tax implications of major purchases and life events," noted Mr. Murchison "It's important to seek professional advice from a financial advisor who can help build knowledge around the tax implications of significant life events and of larger, more complex asset purchases, with an overall view of the impact on your wider financial plan."
Comprehensive Tax Planning Maximizes Earnings
The study also uncovered that while half of Canadians seek out professional tax advice (54 per cent), only 17 per cent get this advice from a financial advisor. "An advisor is unique in that they take a comprehensive approach to financial planning, building an integrated and personalized plan that accounts for every aspect of your financial life in the most tax-efficient manner," concluded Mr. Murchison.
About the Pollara Study
This study was conducted with an online sample of 1,229 adult Canadians aged 18 years and above. This research was conducted from February 15th to 28th, 2024. Results from a random sample of this size can be considered accurate to within ±2.8%. 19 times out of 20.
About IG Wealth Management
Founded in 1926, IG Wealth Management is a national leader in delivering personalized financial solutions to Canadians through a network of advisors located across Canada. IG Wealth Management has $125.4 billion in assets under advisement as of February 29, 2024, and is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial, together with its subsidiaries, is one of Canada's leading diversified wealth and asset management companies with approximately $247 billion in total assets under management and advisement as of February 29, 2024.
SOURCE IG Wealth Management
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