Page 8 - Jan Feb 20 Reporter

Insurance UPDATE

why it's time to move beyond

one-size-fits-all financial planning

by Kate MacDonald
morneau shepell or many, the concept of retirement brings both One of the fundamental truths of financial

Fpositive and negative feelings. At one end of the planning is that saving will benefit individuals in their
spectrum, retirement can be exciting, associated with future. However, there are consequences that stem
independence, flexibility and freedom. On the other, it from the assumption that putting all of one’s money
can create anxiety, brought on by the thought of the into a single savings vehicle will appropriately set
financial savings needed to enjoy a stress-free life. them up for success later in life.
Regardless of where one stands on that Depending on one’s stage of life and lifestyle
continuum, the financial path leading up to objectives, there are a number of ways to approach
retirement is typically seen as a linear one — but it financial planning. While one individual may be
doesn’t have to be. focused on starting a family and buying property,
Organizations have skewed the conversation another may be dedicated to career development and
toward continuously increasing savings as Canadians higher education. At the same time, a third individual
approach retirement, without consideration of may be focused on travelling and spending their life
personal circumstances, lifestyle and other financial embracing exciting experiences.
goals. The information, tools and education The savings strategy required to best set one up
available for financial well-being today are ultimately for success later in life differs based on an individual’s
incomplete, fragmented and biased — often situation — yet financial education has traditionally
produced by organizations with a remained the same, focused on one type of lifestyle.
"Life and the vested interest in funnelling capital into One of the only commonalities between these
certain savings vehicles. situations is the advice the individual receives to
financial realities The reality is that there is no one- continuously save for retirement. To date, the issue
that comes with it size-fits-all approach to financial often stems from employers due to the limited
planning. Financial well-being is options they offer: In a survey conducted this April on
has changed; the a personal measure that depends financial well-being, Morneau Shepell found that 70
on individual circumstances and percent of employers indicated they do not provide
way we approach motivations, as well as one’s position a financial well-being program beyond retirement
financial planning along the financial literacy continuum. education.
Generally, people understand what
needs to change, financial lifestyle best suits them The importance of financial well-being
too." and recognize that this can (and In theory, the consequences of uninformed saving
should) evolve throughout their lives. may seem surface level, with individuals being left to
Regardless of personal or professional get by with diminished financial resources. In reality,
goals, we all experience important milestones much more is at stake.
throughout our lives that have significant financial The correlation between financial well-being
implications, such as saving for marriage, travelling, and overall health is an ironic one. Financial well-
home ownership or having children. Yet, we’re facing being is often not held to the same high standard as
a concerning reality that Canadians are not able to physical and mental health, yet it has been proven
access the support they need to make informed to be one of the main contributing factors to high
financial choices when facing these life-altering stress. According to the Financial Planning Standards
decisions. Council Canadians ranked money as their greatest

Breaking down the financial paths Insurance Update continued on page 21...

8 LBMAO Reporter - January-February 2020 www.lbmao.on.ca