As investor priorities shift during pandemic, advisors must follow

Financial advisors need to respond to clients’ shifting priorities during the Covid-19 crisis by offering more frequent reviews that go beyond long-term planning, according to a survey.

Polling firm Environics conducted an online survey for Investment Planning Counsel Inc. (IPC) in August that asked 1,000 Canadians with more than $100,000 in investible assets how the pandemic has affected their financial priorities. The survey results were weighted based on age, gender and region.

Almost half of the survey’s respondents said that stable income and short-term cash flow have become more important since the onset of Covid-19 earlier this year, as has the sustainability of their retirement savings. Almost 40% were more concerned about job stability than they were before the pandemic, and roughly the same percentage of respondents were concerned about outliving their money.

Roughly one in five respondents said they had modified a life-long goal since the start of the pandemic because they no longer thought it was achievable.

Most advisors conduct annual reviews that focus on retirement, but the frequency and the focus of those reviews may need to change, an IPC release said.

Advisors may also need to adapt financial plans to focus on short-term goals as well as long-term objectives. Almost one-third of survey respondents said they’re concerned with timelines for purchases over $10,000, pointing to a need for advice on more immediate issues.

IPC said that changing investor priorities show client reviews should address topics such as planning for short-term purchases and child care.

“Long-term planning will always be important, but with the sudden unplanned changes to personal or family circumstances, planning cycles will become shorter,” said IPC president and CEO Chris Reynolds in the release.

“As such, Canadians will want to engage more frequently with their advisor to re-evaluate their plans and get advice.”

Mark Burgess

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Mark was the managing editor of Advisor.ca from 2017 to 2024.