FINANCIAL PLANNING ACTION NOT BEING TAKEN
By Adnews Staff
Canadians think about financial planning, but don't do much about it, according to a survey commissioned by the Canadian Association of Financial Planners. The survey, conducted for the CAFP by Gallup Canada, recognizes that more than half of Canadians are unsure of the amount of money they will need for a secure retirement, and less than one-third are seeking the advice of a financial planner. Other facts revealed by the survey found 71% of people without a financial plan are guessing about their RRSP contribution and only 33% of Canadians report having a written financial plan prepared by a professional financial planner. The survey also found that although a person recognizes the need to start planning early, between the ages of 18 and 29, only one in five people in this age group actually have a professional financial planner. More than 58% of Canadians said they have made, or intend to make, an RRSP contribution for the 1998 taxation year. Of those who have made, or plan to make an RRSP contribution, 72% have a written financial plan, and 44.4% don't have a plan. Just over 23% had made their contribution as of early December. Men are more likely to contribute to an RRSP than women, with 56.6% of men contributing and 50.7% of women contributing. RRSP participation is highest in Ontario and lowest in Atlantic Canada. When asked how they make a decision on how much to contribute to an RRSP, 51.3% said it depended on the availability of funds, just under 30% said they contribute the maximum allowed and 8% said they take a guess as to the amount they should contribute. The survey was conducted in the first week of December. It involved a telephone poll of 1, 014 adults.