Financial plans linked to retirement confidence

While economic uncertainty has increased Canadians’ concerns about their finances, a new report from KPMG in Canada shows that those who have a professional financial plan are more than twice as confident they’ll be able to retire when they want, compared to those without a plan.

In KPMG in Canada's recent survey of 1,045 Canadians, more than half (52 per cent) cited economic headwinds as the key trigger in considering the need for a financial plan or revising their current financial plan, and more than half (53 per cent) believe a financial plan is extremely valuable for achieving their financial goals.

Respondents who had a professionally prepared financial plan were most confident in their retirement prospects, with 8 in 10 saying they are financially secure to retire at their desired age - more than double the number of respondents without a financial plan (36 per cent), and nearly ten percentage points higher than those with a self-created plan.

Yet, despite the clear link between professional financial plans and readiness for retirement, nearly half (45 per cent) of all survey respondents said they have not sought the help of a professional financial planner, with 43 per cent saying uncertainty about the process or its value is a barrier, and 42 per cent citing the cost of professional services as a challenge. Less than half (44 per cent) have a ‘very clear’ understanding of what a financial plan entails.

“Many Canadians are not engaging financial planners because they think the process is too complex or costly, and that’s concerning because those who do engage a professional financial planner are more confident about their finances and better prepared for retirement,” says Geoff Rush, Partner and National Industry Leader for Financial Services at KPMG in Canada.

“The data clearly shows there’s immense value in engaging a financial planner to help achieve your financial goals, whether it’s buying a home, making major life decisions such as marriage or divorce, or retirement. More than half (56 per cent) of respondents who have used a financial planner said the value they get from a financial planner is ‘completely worth the cost,” notes Mr. Rush.

“Financial planners are not just service providers, they are trusted advisors – partners, even – who help navigate through all stages of life. Financial planners could engage more Canadians by communicating that message through new or unconventional channels,” he adds.

• 80 per cent of respondents who have a professional financial plan said they are financially secure to retire at their desired age, versus 72 per cent for respondents who created their own financial plan and 36 per cent for those who don’t have a financial plan
• 53 per cent said having a financial plan is ‘extremely valuable’ to achieving their financial goals, and 42 per cent said it’s ‘somewhat valuable’ 
• 55 per cent of respondents have used a professional financial planner to help create their financial plan
  • 25 per cent have created their own financial plan
  • 20 per cent did not have a financial plan
• Among respondents who have used a financial planner, 56 per cent said the value they get from a financial planner is ‘completely worth the cost,’ and 37 per cent said it’s ‘somewhat’ worth the cost
• 43 per cent said the process of creating a financial plan – and its value – is challenging
• 42 per cent said the cost of professional financial planning is a barrier to getting started on a financial plan
• 44 per cent describe their understanding of what a financial plan entails as very clear
  • 48 per cent describe their understanding of what a financial plan entails as somewhat clear and 8 per cent describe it as ‘not clear’

The survey also reveals several trends among different wealth segments, with ranging preferences on financial plan personalization, communication channels and interactions with their financial planner.

Having a personalized financial plan is a priority for Canadians across all age groups and genders, with two thirds characterizing it extremely important.  When broken down by wealth, high net worth (HNW) and mass affluent respondents both prefer personalized, high-level plans and annual, in-person meetings with their financial planner. By contrast, mass retail investors want more detailed plans, are more inclined to use digital tools, and prefer to meet their financial planner primarily during life events or changes.

“Our research findings reinforce an industry shift that’s been increasingly evident over the last few years, where mass affluent Canadians are seeking the same level of white glove-like service previously reserved for high-net-worth investors,  while mass retail investors rely more on digital tools and information available on a self-serve basis. This underscores the need for financial planners to adapt to these evolving needs by re-evaluating and modernizing their processes and technological frameworks,” says David Bardsley, Partner and National Leader of KPMG in Canada’s Wealth Management practice.

Canadians’ attitudes towards trusting and using technology in financial planning differ by generation. Compared to Generation X (aged 46-60) and Baby Boomers (aged 61-75), younger respondents in Generation Z (aged 25-30) and Generation Y (aged 31-45) cohorts put greater trust in technology-driven tools such as AI to manage or create their financial plan, though a majority trust it mainly for basic financial planning. By contrast, Generation X and Baby Boomer respondents prefer to trust a human advisor for all their financial planning needs.

A majority (54 per cent) of Generation Z respondents are more likely to use a self-service financial planning tool instead of a human advisor if it was available to them, more than any other generation. By contrast, 56 per cent of Baby Boomers prefer working with a human advisor, while 41 per cent of Generation Y respondents prefer a combination of self-service tools combined with human advisor support. Generation X respondents were almost evenly divided across all three categories.  

Regardless of whether respondents prefer technology or human advisors, all age groups agreed that real-time access to their financial plans is a priority, with nearly three quarters (72 per cent) saying it would enhance their financial planning experience.

"In an era where real time access to information is paramount, it's not surprising that Generation Z is expressing demand for self-service financial planning tools while Baby Boomers continue to value an overtly personalized, human touch. The future of financial planning lies in leveraging the efficiency of technology with the empathy of human interaction. This hybrid approach, coupled with the universal desire for real-time access to financial information and plans, will inform Canadians’ financial planning experiences across generations,” says Mr. Bardsley.

KPMG in Canada surveyed 1,045 Canadians between April 2-4, 2025 to gauge their knowledge of and attitudes towards professional financial planning.  Just over half (59 per cent) of respondents identified as males and 41 per cent as females. 23 per cent were aged between 25-45 (Generation Y and Z), 23 per cent were aged 45-60 (Generation X) and 54 per cent were aged 61-79 (Baby Boomers). Respondents were categorized by their total investable assets, with 21 per cent having investable assets under $100,000; 21 per cent between $100,000-$350,000; 19% between $350,000-$500,000; 20 per cent between $500,000-$750,000; and 20 per cent between $750,000-$2,000,000. Responses were grouped and analyzed under three primary wealth bands: Mass Retail (under $100,000), Mass Affluent ($100,000–$750,000), and High-Net-Worth (HNW) ($750,000–$2,000,000).