Despite the importance of preparing for retirement, Canadians don't have all the knowledge they need to understand this complex subject. To find out more, most turn to financial institutions, which provide information through tools such as brochures, websites and online videos.
In this research, we took a look at these retirement planning tools offered by financial institutions. Our qualitative analysis of a sample of these tools, with the help of
with the help of experts, raises a number of questions that deserve to be explored in subsequent studies.
We have observed that the information presented in the tools used by financial institutions is not objectively false. What's more, these tools have undeniable advantages.
can enable consumers to start thinking about retirement planning, and raise their awareness of this sometimes daunting subject. Most often, the tools are written in general terms
and invite the consumer to meet with a representative of the financial institution.
In many cases, however, we've seen tools that seem to gloss over the importance of public plans in the Canadian income system. There is concern that consumers are being steered towards financial products such as RRSPs and TFSAs, without knowing the full range of their retirement income options and the strategies they can implement. Similarly, the fact that fees apply to the financial products being advertised is generally overlooked. In some cases, tools appear to provide information that does not take into account a consumer's specific situation and savings needs; sometimes, general rules are promoted, urging consumers to contribute as much as possible to RRSPs and TFSAs.
In semi-structured interviews, Canadian consumers said that the tools provided by financial institutions give them the opportunity to tackle a complex subject, but that they need personalized advice before making financial decisions. Despite a certain amount of mistrust, many said they believed the information provided by financial institutions; some even said they had already followed their recommendations, or at least wished to do so. Finally, the tools analyzed raise the question of the conflict of interest between the financial institution's role of educating and selling products. In such a context, and given the importance for consumers of receiving adequate information, it seems appropriate to pursue research in this field.
Option consommateurs 's recommendations include encouraging the use of retirement planning tools from neutral, independent organizations. They also call on financial institutions to disclose more information to consumers on issues identified in the tool analysis, such as the fees applicable to the financial products they offer and how their employees are remunerated.
