A significant percentage of Canadians surveyed for the Financial Planning Standards Council’s (FPSC) Financial Blind Spots report admit they feel clueless about their personal finances — either because they’re overwhelmed or confused by the financial information available.
In fact, the survey discovered that 39% of Canadians feel they don’t have their financial futures under control while 29% admit to being overwhelmed by their financial options.
“The results of the FPSC survey bring to light the emotional side to personal finances and a need for vigilance when it comes to being informed,” says Kelley Keehn, the FPSC’s consumer advocate, in a statement. “A great number of Canadians lack clarity in terms of preparing financially for the next chapter of their lives.”
When the survey posed a series of scenarios to participants about their financial future, 39% said they were unclear of their long-term financial goals and almost half 49% admitted they don’t know how much they need to save for retirement.
The survey also reveals that many Canadians are unprepared for unexpected expenses. For example, almost one-in-five Canadians (18%) believe an emergency fund is unnecessary and 15% use credit without understanding the long-term consequences.
“People can often get paralyzed by all the information available — to the extent that they just shut their minds off,” adds Keehn. “It’s critical to have a financial plan, yet many Canadians don’t.”
Montreal-based Leger conducted the survey of 1,527 Canadians online between July 31 and Aug. 3.
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