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Nearly half of all Canadians feel less financially secure due to COVID-19

Canadians with an advisor report feeling significantly better, according to survey

September 8, 2020  by CM Staff

Canadians and their finances during COVID-19 (PHOTO: Sun Life Financial Canada)

TORONTO — A recent Sun Life survey indicates that nearly half of all Canadians (45%) feel less financially secure since COVID-19 began. The survey also highlights the interconnectedness of health and finances. 44% of those who say their mental health has been affected by the pandemic identify financial stress as the main factor.

According to the survey, Canadians working with an advisor are feeling more financially secure and are experiencing less mental health impacts than those who are managing their finances and investments on their own. Among those who said their mental health has been negatively affected by the pandemic, those who use an advisor (35%) are less likely to report financial health concerns as a major factor weighing down their mental health. That figure rises to 47% among those who manage their investments themselves.

Despite identifying financial concerns, only 6% of Canadians surveyed began using an advisor since the pandemic began.

“With a large percentage of Canadians feeling less financially secure as a result of the pandemic, there is no better time to seek advice from a trusted advisor — one who knows you and your personal goals,” said Rowena Chan, president, Sun Life Financial Distributors (Canada) Inc. and SVP, Distribution, in a prepared statement. “It’s important for Canadians to have health, wealth and protection solutions in place. At Sun Life, we are in the unique position to help ensure you have a holistic, sustainable plan to address your needs and goals – no matter your life stage.”

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Across the population, younger Canadians appear to be feeling the impact of the pandemic the greatest with 49% feeling less financially secure. In fact, over half of young Canadians surveyed (55%) report having made changes to their financial goals and plans due to the pandemic with 29% saying they have had to dip into their savings during COVID-19.

“Everyone can benefit from holistic and personalized financial advice,” explained Chan. “Working with an advisor can help build a new level of confidence and a lifetime of financial security and well-being.”