Many Canadian snowbirds may be winging it when it comes to their finances, based on the findings of a recent poll.
Only 21% of snowbirds spoke with a financial professional about their plans to live abroad during the winter months, a CIBC survey conducted in December found.
At the same time, a majority of poll respondents (73%) were concerned about the economic environment of rising inflation and interest rates.
Financial advisors can help snowbird-clients with their concerns by managing currency exchange rates, planning for medical expenses, navigating tax considerations, and ensuring bill payments are automated, Carissa Lucreziano, vice-president, financial and investment advice with CIBC, said in a release.
Destination is a key consideration for such planning. The poll found that the top snowbird destination was the southern U.S., cited by 48% of respondents, followed by Mexico and Central and South America (24%), the Caribbean (14%) and Europe (14%).
Another finding with planning implications was that few snowbirds (7%) stay in their own properties when they’re abroad. Most stay in short-term (26%) or long-term (24%) rental homes.
Among poll respondents whose dreams of warm and sunny winter days aren’t yet a reality, 27% said they plan to delay retirement so they can save more, and another 27% said they’re cutting back on discretionary spending to reach their goal.
The online poll of 1,010 Canadians age 50 and older was conducted by Maru/Blue from Dec. 14 to Dec. 23, 2022. The polling industry’s professional body, the Canadian Research Insights Council, says online surveys can’t be assigned a margin of error because they don’t randomly sample the population.