Even though 64 percent of Canadians have a financial plan, and 80 percent of those say having one has helped them achieve their fiscal goals, a majority of our neighbors to the north say that a major life event would devastate their finances.
According to a report by BMO Wealth Institute, “The Biggest Life Events That Can Derail Your Financial Plan,” 60 percent of Canadians said they felt unprepared financially to handle a major life event, such as retirement, declining health of a spouse or the death of a spouse.
Further, 84 percent stated they would weather a major monetary blow if they were disabled, and three-quarters said the death of a spouse or a separation/divorce would negatively impact their financial status.
Chris Buttigieg, senior manager, wealth planning strategy, for BMO Financial Group, said in a statement that having a financial plan can be helpful, but “one of the biggest mistakes individuals make is not stress-testing that plan against unforeseen events that can cause financial derailments.”
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