Consumers often view ‘long-term’ as a period lasting 24 years, regardless of their current age., according to research from Canada Life.
The study is part of Canada Life’s Long-Term: Close Up programme, which looks at how consumers feel about long-term financial planning and how financial advisers can better help their clients as they plan for the future.
Family is the most influential factor in long-term planning for 54 per cent of respondents, followed by friends, 22 per cent, and financial advisors, 17 per cent. But more than one-fifth of respondents believe advisers should have more influence. Although 72 per cent of consumers plan forward financially, 35 per cent of consumers are currently planning for the future without the help of advisers.
Currently, advisers are primarily utilised for retirement and pension planning, investment opportunities, wealth and inheritance planning and accomplishing specific financial goals. But the findings suggest that advisers may have a greater impact on their clients’ overall long-term planning and the finances they require in the future.
Canada Life marketing director Lara Bealing says: “In this industry, we talk about the importance of taking a long-term view when it comes to our finances, but do we take stock and ask clients how far ahead they are thinking when we talk about the ‘long-term’? It can be very subjective, making it even more important for advisers to fully understand their clients’ plans well into the future.
“We’ve embarked on an ambitious project to uncover the behavioural bias around long-term, and through insight and partnering with renowned behavioural psychologists, will explore long-term thinking, decision making and planning to help support better conversations with clients.”
