The biggest financial priority for 30% of Canadians, overall, is taking care of their debt and an almost equal percentage of individuals (28%) say they would go to a financial advisor for help with debt management, according to a new report from Toronto-based Bank of Montreal’s (BMO) wealth-management unit.
The study, entitled The personal balance sheet, is a document designed to motivate Canadians to think about how their financial priorities will change through various life stages, which include building a career, becoming a parent and preparing for retirement.
The study breaks down responses by age group and it finds that reducing debt is also the top priority for those who are between the ages of 35 and 54. However, the top priority shifts for the other two demographics surveyed. The most popular response for 26% of millennials between the ages of 18 and 34 is saving more while Canadians over the age of 55 (29%) prioritize effective investing and tax efficiency.
The financial priorities of the different demographic groups also correlate with the services they would like to see from advisors.
More than one-third (35%) of millennials say they would go to an advisor for cash flow management and debt management but only 19% of those over the age of 55 would go to an advisor for the same issue. Estate planning was a higher priority for 30% of those in the oldest age group vs 22% of millennials.
The BMO report also looks at Canadians’ biggest financial concerns, with the most popular answer for 29% of overall survey participants being they will not be able to save enough to meet their financial goals. This is also the top response for 35% of millennials and 29% of those between the ages of 35 and 54 while those (31%) heading into retirement are most concerned about outliving their money.
Canadians in all three demographics felt similarly about the their top two spending concerns, with most saying their biggest worry is being unprepared for unexpected expenses. Survey participants’ second largest concern is a dramatic increase in the cost of everyday goods.
It appears that survey participants are taking their concerns seriously as the most popular action taken with their savings or investments is setting aside money in an emergency fund. This was the case for 48% of Canadians, overall, 59% of millennials, 45% of those between the ages of 35 and 54 and 39% of those aged 55 or older.
Further information from the report can be found here.
ValidateIt Technologies Inc. conducted the online survey of 1,018 adult Canadians for BMO Wealth Management. The responses were gathered between April 13 and April 18.
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