Half of Canadians are reporting they need help with their retirement portfolios, according to a new study by BMO Global Asset Management Inc. in Toronto.
When asked to identify the issues with which they would like more assistance, the respondents had multiple responses.
The most popular answer, with 56%, was that Canadians need help deciding which investments are best for their needs.
“Understanding how their retirement portfolios will react in certain markets” and “making adjustments because of market conditions” were tied with 53% of respondents choosing these responses. Slightly more than half of Canadians wanted assistance ensuring their portfolios are diversified and 48% wanted a hand at determining their risk tolerance.
It is understandable that so many Canadians are uncertain about how to manage their retirement nest eggs, says Robert Armstrong, vice president, BMO Global Asset Management.
“Taking into account market volatility, diversification and your risk tolerance is a lot to consider,” he adds. “With so many options available, it can be challenging to find the optimal balance.”
The results also indicated that millennials are more likely than baby boomers to be unsure about this area. For example, 63% of millennials would like assistance in choosing the best investments for their needs. This is in contrast to 48% of baby boomers that chose the same response. And 65% of millennials could use some help figuring out how much money is needed to retire as opposed to 33% of boomers. Also, approximately a third of millennials say they will need help deciding when to downsize to a smaller home while only 13% of boomers say the same thing.
“Retirement planning includes both financial and non-financial aspects. If [Canadians] can get help with either or both, it can go a long way,” says Armstrong.
A financial professional can help by creating a financial plan that identifies short- and long- term needs, what Canadians need to save and what is needed to reach their goals, he says.
Pollara Strategic Insights conducted the survey between Jan. 26 and Feb. 2, using a sample of 1,003 adult Canadians.