Canadians are approaching investments more conservatively, and are increasingly seeking second opinions from alternate financial advisors, a recent study by Bank of Nova Scotia has found.

The study, which gauged Canadians’ attitudes toward investing and retirement in the current economic environment, found that a quarter of Canadians have taken a more conservative approach to their investments and savings as a result of economic uncertainty and market volatility

“Considering that equity markets worldwide are down significantly, it comes as no surprise that investors are paying close attention to their risk tolerance and how their portfolios are positioned to meet their long term goals,” said Gareth Watson, director and senior equity advisor at ScotiaMcLeod. “In down markets, it’s natural for investors to become more conservative when surrounded by substantial volatility and uncertainty.”

Investors over the age of 50 have been hit particularly hard, according to the study. More than one-third of this demographic has decided to delay retirement due to the recent market turmoil.

Among the 700 household investment decision makers polled in November, 39% said they are paying more attention to their investments as a result of the economic environment.

More than half said they are now more likely to seek a second opinion on their investments. In fact, 30% have already sought a second opinion at a financial institution they do not normally deal with. Of those Canadians, 17% took the recommendations of the advisor who provided the second opinion.

“Financial planning is a high priority for many Canadians,” said Watson.

Financial advisors at banks and credit unions appear likely to be high in demand in the year ahead, with 40% of respondents planning to utilize such advice.

IE