Canadians know financial planning is good for them, but too few actually do it and too many are unclear about what is really involved. That’s according to a Financial Planners Standards Council consumer survey released Tuesday.

Seventy-five per cent of Canadian adults surveyed said good financial planning is very important to their future well-being, while the same proportion (73%) said having a financial plan is important.

However, when asked if they have a written financial plan, only about a third said they do.

FPSC commissioned Lynn Gordon Research of Toronto to conduct the comprehensive Financial Planning consumer survey this spring as a followup to its 1999 consumer survey.

“The needle is moving in the right direction but we still have a long way to go in educating the public about financial planning,” said Ann Bowman, FPSC VP communications and corporate relations.

“Our mandate and the task at hand for the entire financial planning community is to continually raise the bar on standards while also educating the public on the benefits and distinctions of financial planning. The new Financial Planning Practice Standards, which are being introduced this fall, will substantially move us in that very direction,” Bowman added.

Among the survey’s key findings:

  • 53% of respondents said they have at some point used a financial professional to help them manage and structure their financial affairs, while 39% currently use one.
  • The proportion of young adults (18-29) who use financial professionals to manage and structure their financial affairs doubled from 1999 to 2003 (from 8% to 16%).
  • Respondents indicated high satisfaction with their financial professionals. 79% (of those who use one) rated their satisfaction within a 7-10 range (out of 10).
  • 74% of respondents said they are optimistic about their financial future. This proportion increases to 79% among those with a financial plan.

The survey was conducted by telephone from April 29 to May 14, with a representative sample of 750 English Canadians, 18 to 75 years of age. The margin of error at the 95% level of confidence is +/- 3.5%.