Be proactive to help clients deal with recession fears

Read More: Recession likely say chief economists and Canadians are concerned | Wealth Professional

Ramsay said this concern is a notable change from previous surveys, with the pandemic, market volatility, and now headlines about a potential recession obviously all playing into that.

“If any good came out of COVID it is that people are focusing on their finances a little bit more and realizing that an emergency fund is important,” she said. “They’ve started to put that in place, but inflation is having an impact on them being able to meet their financial goals.”

Given that, Ramsay suggested that advisors should check in with whether their clients’ goals are shifting and whether their budgets need to shift, too. They can review monthly payments, such as insurance bills and monthly subscriptions, to ensure they’re getting the most from their money.

But, she also noted that 25% of Canadians – 31% of those aged 45 to 54 – do not track their financial progress, so advisors can introduce them to tools, such as online apps, to help them do that. That can help them stay on track, even when they’re feeling constrained.

“What’s really positive is that clients are already proactively taking steps to manage things,” said Ramsay. “They’re reprioritizing some things, like holidays, so they’re paying attention, but we can help them be more proactive in terms of assessing their financial goals and managing things.”