Canadian financial confidence up

Increased economic growth and stock market gains have pushed the Russell Financial Health Index (RFHI) to its highest level since the fourth quarter of 2008.

Based on an online calculator that gauges the overall financial health of Canadian investors, the RFHI is currently up to 51.1 points from its low of 47.9 points in the third quarter of 2009 (higher points means greater financial optimism).

“The Russell Financial Health Index has helped Canadians get a better understanding of their financial situation so that they can take action and start planning for a financially healthy retirement,” says Fred Pinto, managing director of distribution services at Russell Investments Canada Ltd.

According to Russell, investors who recently used the online calculator displayed less concern across most of the 11 potential areas of financial concern that are listed in the RFHI. “Having sufficient income to cover essentials” saw the greatest decrease in concern among Canadians.

Investors are also less concerned about having enough income for their lifestyle in retirement, riding out Canada’s economic performance and having a reliable source of income.

The issues that are keeping Canadians up at night are “having the ability to leave assets/inheritance to beneficiaries,” which saw a notable increase in concern, “finding reliable professional advice” and “worries about the financial impact of medical issues and healthcare needs.”

(05/03/10)