Company Announcements

IG Private Wealth Management Study: Affluent Canadians Re-Evaluating Finances and Retirement Plans Amid Economic Concerns

  • Eighty-two per cent of HNW Canadians worried about where the economy is headed
  • Three-fifths concerned about maintaining and growing their wealth
  • While three-quarters work with an advisor, less than half have a financial plan
  • Half plan to delay retirement and work longer given current economic climate

TORONTO , Nov. 23, 2022 /CNW/ - Most high-net-worth (HNW) Canadians (defined as having $1M or more in investable assets) are feeling more stressed about the impact a volatile economy will have on their wealth and lifestyle, according to a new study by IG Private Wealth Management (IGPWM), a division of IG Wealth Management.

As a follow up to  IGPWM's 2021 report on affluent Canadians and the transfer of wealth, this new study reveals that concerns about the economy and the impact it is having on wealth and retirement planning are top of mind among HNW Canadians. Key findings include:

  • A large majority (82 per cent) are worried about the Canadian economy, including individual factors such as inflation (84 per cent), and rising energy (72 per cent) and interest (49 per cent) rates.
  • Three-fifths (61 per cent) are concerned with maintaining and growing their wealth in the current economy, and half (49 per cent) are concerned about managing their wealth.
  • While three-quarters (74 per cent) work with a financial advisor, less than half (45 per cent) of those that do have a holistic financial plan that addresses all dimensions of their financial life.
  • Three-fifths (60 per cent) of those who work with an advisor say their advisor helps them manage their wealth, grow their wealth (59 percent) and mitigate adverse effects of the economy (56 per cent).

"Much like other groups, high-net-worth Canadians are concerned about where the economy is going and its impact on their personal situation," said Damon Murchison, President and CEO, IG Wealth Management.  "With wealth comes increased complexity so it's especially important, during these times, to not only seek out the help of a qualified financial advisor who can put things in perspective but also to select one who will work with you to develop a holistic financial plan that's stress-tested and keeps pace with your evolving situation."

Retirement plans being reassessed

The study also found that, while almost all HNW Canadians have at least an idea of what retirement will look like (92 per cent), only about half have a detailed retirement plan (47 per cent). The pandemic and its economic aftermath have had a lasting effect on their retirement planning, with many rethinking their goals, and how they will accomplish them:

  • While most (85 per cent) are confident that they will have enough money to support their lifestyle in retirement, half (48 per cent) reported changes to how much money they will actually need to retire.
  • Further, nearly half (46 per cent) have reported changes to when they will retire, what their retirement will look like (45 per cent) and how they will manage their investments in retirement (46 per cent).
  • Of those who are considering delaying retirement, more than half (51 per cent) reported they will need to work longer because their investments are earning less and costs of living are on the rise.

"Before reaching any conclusions about how your retirement may change given the state of the markets and where the economy may be headed, take a moment to consult with an advisor on how your golden years may or may not be impacted," noted Mr. Murchison. "Any thoughtful financial plan should include a robust retirement component- one that factors in a variety of things such as lifestyle preferences, sources of income and tax and estate planning considerations.  We live in very complicated times—the value and importance of professional advice and financial planning has never been more evident."

IG Private Wealth Management, a division of IG Wealth Management, provides financial planning services to meet the complex needs of high-net-worth Canadians.

About IG Wealth Management

Founded in 1926, IG Wealth Management is a national leader in delivering personalized financial solutions to Canadians through a network of advisors located across Canada. In addition to an exclusive family of mutual funds and other investment vehicles, IG offers a wide range of other financial services. IG Wealth Management has $108.3 billion in assets under advisement as of October 31, 2022 and is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's leading diversified wealth and asset management companies with approximately $246 billion in total assets under management and advisement as of October 31, 2022.

About the Pollara Study

This study was conducted with an online sample of n=500 Canadians who have investable assets of $1M or more.  This study was conducted between October 7th and 14th, 2022.  Results from a probability sample of this size could be considered accurate to within ±4.4% percentage points, 19 times out of 20. Results have been weighted on the basis of age, gender and region to be representative of this population in Canada as a whole.

SOURCE IG Wealth Management