March 11, 2021
TORONTO, March 11, 2021 /CNW/ - It has been one year since the pandemic started in Canada. This past year has tested Canadians' physical, mental and financial health in many ways and data is starting to surface interesting impacts across demographics. Two groups focusing more on planning and saving for the future because of the pandemic? Canadian Gen Z (aged 18-23) and Millennials (aged 24-39).
A recent survey by Sun Life found that 80 per cent of Millennials want to protect their financial future now more than ever due to COVID-19. This number increases to 89 per cent for Gen Z.
Despite seeing an increase in wanting to start their wealth and protection journeys, a remarkable 74 per cent of Gen Z and 60 per cent of Millennial respondents reported that the pandemic has made saving for the future difficult due to a loss of income or employment.
Many young Canadians have been directly impacted by job loss and business closures throughout the pandemic. Those who have not been directly affected continue to fear the possibility of loss of income. Building a secure financial future in a world of uncertainty has never been harder or more important for all Canadians.
However, while 81 per cent of Gen Z and 76 per cent of Millennials shared that the pandemic has made them want to focus more on their financial security, Gen X (aged 40-55) and Boomers (aged 56 and older) are not as concerned. Only 61 per cent and 55 per cent respectively said the pandemic has made them want to focus on their financial future.
"Generally, the feeling of wanting to save for the future is more prevalent with older generations," said Oricia Smith, President, Sun Life Global Investments and Senior Vice President, Investment Solutions, Sun Life Canada. "Due to the pandemic, we're seeing a shift in priorities. The uncertainty created by COVID-19 has highlighted the importance of preparing for the unexpected. It's encouraging to see younger generations take an interest in setting achievable goals, planning for the future and investing even a small amount of money. It will benefit them for years to come."
Sustainable investing and increasing lifetime financial security are key elements of Sun Life's approach to sustainability. Planning for the future is part of that. Working with an advisor can help build a deeper understanding of where money will come from, how to adapt finances to the different moments of life, how to work with a solid plan to maximize retirement savings, and how to protect against unexpected circumstances.
"With a large percentage of young Canadians expressing interest in financial security, there is no better time to seek advice from a trusted advisor," said Sadiq S. Adatia, Chief Investment Officer, SLGI Asset Management Inc. "A professional can help young Canadians determine a strategy that works for them. For instance, a target risk or target date strategy is a great option for individuals who want a well-diversified portfolio with a long-term outlook," Adatia added. "When you feel financially uncertain, talking to a professional can help you understand your options to save, build, and make sure you're protected along the way."
About the survey
The survey is based on findings of an Ipsos poll conducted between January 21 - 25, 2021. A sample of 1,000 Canadians was drawn from the Ipsos I-Say online panel aged 18 and older. The data for Canadians surveyed was weighted to ensure the sample's regional, age, and gender composition reflects that of the actual Canadian population. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within +/- 3.5% at 95% confidence level had all Canadian adults been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to methodological change, coverage error and measurement error.
About Sun Life
Sun Life is a leading international financial services organization providing insurance, wealth and asset management solutions to individual and corporate Clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of December 31, 2020, Sun Life had total assets under management of $1,247 billion. For more information, please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
Note to editors: All figures in Canadian dollars
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SOURCE Sun Life Financial Canada