Advisors providing bulk of RRSP expertise: Survey

(March 24, 2003) Nearly half of all Canadians use a financial advisor to help them with their retirement savings plans, a Leger Marketing survey released today concludes. The poll also indicates that while seven in 10 Canadians plan their RRSP contributions well in advance, nearly one-quarter make last-minute decisions.

When asked who provides advice on retirement savings, 46% of those surveyed by Leger for the Canadian Press pointed to a financial advisor. Twenty-one per cent said they rely on the assistance of a family member and 17% said they make investment decisions on their own.

The percentage of those relying on advisors increased with income levels and among professionals. By age, 35- to 44-year-olds were the most likely to use an advisor. But the number of do-it-yourself investors appears to increase with age, peaking at 25% for those over 65.

Overall, 56% of Canadians say they have some type of RRSP. Albertans, at 72%, were the most likely to have an RRSP, while Quebecers were the least likely to have one. Eighty per cent of those making more than $60,000 had RRSPs.

There were also significant generational differences. Nearly 70% of those aged 45 to 54 had RRSPs compared to only 17% of 18- to 24-year-olds.

The survey also suggests that investors are generally more concerned about security than returns. More than half said the safety of their investment was the most important consideration, while 28% said they were more interested in returns.

Women (58%), those nearing retirement (60%) and those with incomes under $40,000 (62%) were the most likely to be seeking safety. Men (34%), Albertans (39%) and those with incomes above $60,000 (39%) placed more emphasis on returns.

Leger conducted more than 1,500 telephone interviews from March 4 to 9, 2003. The results are considered accurate within 2.5 percentage points.

Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca