How generational attitudes on financial advisors differ

The differing attitudes toward financial advisors is not due to a lack of interest in financial planning and management. Rather, younger generations are leaning towards newer tools available to them.

Among Canadian investors, 44% feel their advisor provides high value, and 74% believe their financial advisor is worth every dollar they pay. Additionally, 71% say they plan to remain with their current advisor, with that figure rising to 80% among those aged 55 and over.

However, the level of trust financial advisors enjoy is changing with a cohort of younger investors. Among those aged 18 to 34, 40% use online platforms for investment management, while only 38% rely on financial advisors.

By contrast, 70% of those over the age of 55 use a financial advisor, with only 17% turning to online platforms.

Still, young Canadians show a significant level of hesitation when it comes to investment management, regardless of the support they use.

The survey found that 35% report not fully trusting their financial advisor — when asked whether they can manage their own investments, many admitted to lacking the time (47%), knowledge (39%) or confidence (42%) to do so effectively.

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Canadians appreciate having an actual person to advise them

While younger generations may be leaning more towards online brokerages, the study highlighted that financial advisors remain the preferred source of advice for most Canadians, regardless of age.

In fact, 89% of investors report that their go-to source for financial information and advice is their financial advisor or bank. Moreover, human advisors are perceived to deliver better investment returns, with 44% of respondents believing that human advisors generate higher returns, compared to only 9% who hold the same view of robo-advisors.

Among those who communicate with their advisor monthly or more, 46% feel optimistic about their financial future, compared to just 18% of those who communicate only once a year. Additionally, 40% of those who have a financial plan created by an advisor express a high level of optimism about their financial future, compared to only 22% of those without a formal plan.

"As the investment landscape evolves, financial advisors will need to focus on building trust, maintaining regular communication and emphasizing the value they provide in an increasingly digital world. Doing so will enable them to serve both traditional and younger investors more effectively," Cianfarani added.

Survey methodology

The survey was conducted by Vanguard from March 21 to 28, among a representative sample of 1,307 Canadian Investors who are members of the Angus Reid Forum. The survey was conducted in English and French.

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Nicholas completed his master's in journalism and communications at Western University. Since then, he's worked as a reporter at the Financial Post, Healthing.ca, Sustainable Biz Canada and more. Aside from reporting, he also has experience in web production, social media management, photography and video production. His work can also be found in the Toronto Star, Yahoo Finance Canada, Electric Autonomy Canada and Exclaim among others.

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