SURVEY: Amid growing concern over inflation, Canadians remain positive about finances
November 10 2022 - 12:00AM
Business Wire
Better prepared, those with a financial
professional feel more confident about their finances
Primerica, Inc. (NYSE: PRI), a leading provider of financial
services in the United States and Canada, released its Canadian
Financial Security Monitor — a national survey that measures how
Canadian families view their finances.
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the full release here:
https://www.businesswire.com/news/home/20221109006094/en/
FINANCIAL SECURITY SCORECARD RESPONSES -
Scorecard shows the value of professional financial advice.
Primerica’s Canadian Monitor graded study participants based on
whether they engage in five financial preparedness fundamentals,
including saving for their future and protecting what they have
through life insurance. The average grade was between B and C. The
scorecard found that 59% of those who met with a financial
professional earned a B or better, compared to just 28% of those
who did not. *Percentages rounded to nearest whole number.
The survey found that while nearly two-thirds (63%) of Canadians
rate their finances positively, about half (54%) say their
financial situation is worsening amid the high rate of inflation
and growing concerns of a possible economic downturn. Those who
work with a financial professional are more positive while those
without are more pessimistic — a trend that held for much of the
survey. The same divide was found between high- and low-income
households. Meanwhile, a majority (57%) of Canadians at all income
levels rate inflation as their top concern, followed by their
health (43%) and paying for food (36%).
“Canadian families are increasingly feeling the pinch of
inflation and our survey data points to the benefits of having
access to a financial professional, regardless of income,” said
John Adams, CEO of Primerica Canada. “There is something to be said
for having the ability to speak with an advisor versus relying on
technology and families that are considered as low- and
middle-income should not have to rely exclusively on a computer to
seek financial guidance.”
Key Findings from Primerica’s Financial Security
Monitor
- Positive outlook on savings, negative outlook on future.
The majority (54%) rate their ability to save for the future
positively. However, about two-thirds (65%) believe they will be
worse off financially next year.
- Dipping into savings vs. increasing credit card use.
Those with incomes in the $40,000 to $60,000 range are the most
likely to report spending personal or retirement savings, with
those in the $60,000 to $120,000 range are most likely to report
increased use of credit cards and taking out a loan.
- Online resources not a suitable replacement for in-person
guidance. Most Canadians (52%) are not comfortable making
financial investments in stocks, bonds or mutual funds online
without working with a financial professional. In addition, a
significant percentage say they’re not comfortable securing a
mortgage (39%) or buying life insurance (37%) under these
circumstances.
- Canadians value financial professionals when it comes to big
decisions. When making a major financial move, nearly half
(49%) would choose to talk with a licensed financial professional,
while nearly two-fifths (39%) would do their own research. Just 1%
would use a robo-advisor.
- Higher income families more likely to have greater access to
financial advice. More than half (54%) of Canadians who make
more than $80,000 a year use a financial professional for advice,
while less than two-fifths (36%) of those making less than $80,000
use one.
“As Canadians mark Financial Literacy Month this November, the
results of Primerica’s survey illustrate how middle- and low-income
households are increasingly being left behind in today’s market,”
continued Adams. “As economic headwinds shift and inflation
continues to negatively impact Canadians, those who are less
affluent should have access to more resources, not less.”
Scorecard Shows the Value of Professional Financial
Advice
Primerica’s Canadian Monitor graded study participants based on
whether they engage in five financial preparedness fundamentals,
including saving for their future and protecting what they have
through life insurance. The average grade was between B and C. The
scorecard found that 59% of those who met with a financial
professional earned a B or better, compared to just 28% of those
who did not.
About Primerica’s Canadian Financial Security Monitor
Using Dynamic Online Sampling, Change Research polled 1,105
adults nationwide in Canada, from October 11-13, 2022
Post-stratification weights were made on gender, age and
province/territory region to reflect the population of these adults
based on the 2016 Canadian Census. Polling was done in both English
and French. The margin of error is 3.2 percentage points.
About Primerica, Inc.
Primerica is a leading provider of financial services to
middle-income households in the United States and Canada. Licensed
financial representatives educate Primerica clients about how to
prepare for a more secure financial future by assessing their needs
and providing appropriate products like term life insurance, mutual
funds, segregated funds, and other financial products.
Primerica insured over 5.7 million lives and had over 2.7
million client investment accounts as of December 31, 2021.
Primerica was the #2 issuer of Term Life insurance coverage in the
United States and Canada in 2021 through its insurance company
subsidiaries. Primerica stock is included in the S&P MidCap 400
and the Russell 1000 stock indices and is traded on The New York
Stock Exchange under the symbol “PRI”.
In Canada, Primerica representatives market term life insurance
and segregated funds underwritten by Primerica Life Insurance
Company of Canada (Head Office: Suite 400, 6985 Financial Drive,
Mississauga, ON, L5N 0G3, Phone: 1-800-387-7876). Mutual funds are
offered by PFSL Investments Canada Ltd., mutual fund dealer (Head
Office: Mississauga, Ontario).
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version on businesswire.com: https://www.businesswire.com/news/home/20221109006094/en/
Gana Ahn, 678-431-9266 gana.ahn@primerica.com
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