A 2021 IG survey showed that 80% of respondents mistakenly believed that their investment plan was a retirement plan. Another three-quarters who worked with a financial advisor and had a financial plan reported that it focused only on investing, so just one-quarter actually had a retirement plan.
A 2022 IG survey showed that only one-third of Canadians used financial advisors to help with their retirement plans. Courcelles said the survey pointed out that many of them think that if they have contributed to the RRSP, they have a retirement plan.
“Retirement planning is just one element of a complete financial plan that includes safe cash management, insurance, risk management, investment planning, retirement planning, tax planning, estate planning and budgeting,” he said. “Retirement plans don’t just focus on investments. They are much wider.
“Advisors need to educate clients that there is nothing wrong with contributing to an RRSP, but it is not retirement planning. Clients need to work with advisors who take a more holistic approach and plan their financial planning. Let’s look at it as a whole because it’s huge.”
While customers can get tax breaks for contributions to RRSPs, and this helps them save for retirement, Courtsales said a true retirement plan looks at all income streams and expenses.