- The Canadian Imperial Bank of Commerce (TSX:CM) and FP Canada’s new poll shows that only 25 per cent of Canadians are receiving professional financial advice, while 30 per cent have yet to formulate a financial plan
- The poll identifies financial terminology and cost barriers as the most pressing obstacles to more Canadians receiving financial advice
- CIBC is a top North American financial institution with more than 13 million personal banking, business, public sector and institutional clients
- CIBC stock (TSX:CM) is down by 16.58 per cent year-over-year and by 3.70 per cent since 2018
The Canadian Imperial Bank of Commerce (TSX:CM) and FP Canada’s new poll shows that only 25 per cent of Canadians are receiving professional financial advice, while 30 per cent have yet to formulate a financial plan.
The poll also found that respondents under 35 years of age were the most likely to eschew a financial plan, while wishing they had one (25 per cent), more than double the figure for older Canadians (12 per cent). Of the respondents who are guided by a financial plan, only 46 per cent have updated their plan over the past year.
Despite 46 per cent of respondents expressing an interest in speaking with a financial planning professional about retirement, only three in 10 Canadians have spoken to one about their financial plan (30 per cent), investment plan (29 per cent) or retirement plan (28 per cent). The poll found that this disparity could be attributed to a lack of clarity among Canadians about financial terminology.
More than half of respondents (54 per cent) define a financial plan as a plan that considers long- and short-term investment products, while 51 per cent define it as “a detailed plan of one’s financial circumstances, goals and strategies to achieve them,” according to Monday’s announcement.
The disparity also seems to be a matter of perceived expense, with one third believing the cost of financial planning outweighs the benefit, and those under 35 most likely to cite the cost barrier.
The quarter of Canadians who receive financial advice identified the following factors as key to their choice of advisor:
- Credentials and educational background (38 per cent)
- Investment performance (35 per cent)
- Referral (35 per cent)
- Competitive fees (33 per cent)
“Working with a financial professional to develop a personalized financial plan that takes into account your short- and long-term goals can help you make more informed financial decisions and, ultimately, make your ambitions a reality,” Carissa Lucreziano, vice president, financial and investment advice, CIBC, said in a statement.
“At FP Canada, we know that partnering with a professional financial planner is key for Canadians to achieve financial well-being and resilience,” said Tashia Batstone, president and CEO of FP Canada. “Developing and implementing a plan pays dividends because it ensures your financial goals are articulated and that you’re implementing strategies to achieve them. Financial planners provide an important service to Canadians of all income levels and demographics, ultimately helping them achieve financial health.”
FP Canada is a national not-for-profit education, certification and professional oversight organization focused on financial planning in Canada.
CIBC is a top North American financial institution with over 13 million personal banking, business, public sector and institutional clients.
CIBC stock (TSX:CM) last traded at C$53.69 per share. The stock is down by 16.58 per cent year-over-year and by 3.70 per cent since 2018.
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