Canadian affluent investors are feeling confident about their financial future, according to the results of a survey released Monday by Toronto-based Manulife Financial Corp.
Seventy per cent of affluent Canadians feel that they are on track to meet their financial goals, according to the survey, while 50% believe that their finances will improve in the next two years.
Manulife surveyed Canadians with household incomes of $75,000 or greater and investible assets of $100,000 or more.
This sense of optimism and confidence stems in large part from many Canadian investors taking key financial messages to heart recently, says Paul Lorentz, executive vice president, investment and insurance solutions, Manulife Financial, in Waterloo, Ont. For example, the top financial-related New Year’s Resolution for affluent Canadians, according to the survey, is paying down debt (31%).
As well, getting a handle on personal finances and maintaining that control are also top priorities for affluent Canadians this year. For instance, the survey listed Canadians top three financial priorities of 2013 as follows: manage/maintain current lifestyle (32%), pay down debt (18%) and save for retirement (15%).
However, affluent needed a little help to obtain that feeling of control over their finances. According to the survey, seven in ten affluent Canadians work with a financial advisor to achieve their financial goals.
Seeking advice on how to get better returns (24%) is the main reason affluent Canadians give for working with a professional financial advisor.
This is good news for financial advisors, says Lorentz, because there are still many Canadians without full financial plans and this is a chance for advisors to demonstrate to clients the value add of having a formalized strategy for their personal finances.
Affluent Canadians who do not work with a financial advisor say it is because they feel knowledgeable enough to manage their investments on their own.
For the the Manulife Financial Sentiment Index, 1,003 online surveys were conducted between Nov. 30 and Dec. 8, 2012. The surveys were completed by household decision makers of 25 years of age and older.