The wealth management arm of mortgage lender BMO has published its first Canadian Wealth Index. The aim is to provide a snapshot of Canadian’s financial health and their ability to manage their wealth. The index ranks residents of each province out of a score of 100 to show who is most successful in managing their wealth. Metrics include; having, reviewing and maintaining a financial plan; household debts and assets; retirement savings; having insurance in place; estate planning components; rainy day savings; and the sustainability of their current financial situation.
The study shows that those in Saskatchewan are the best at managing their finances overall with a score of 72.9 out of 100, followed by Quebec (71.1), Alberta (70.6) and Newfoundland & Labrador (70.4). The national average was 69.3. Having a financial strategy and life insurance were high-scoring among respondents while ensuring efficacy of their plan, prioritizing retirement savings and having critical illness insurance were the lowest-scorers.
When asked if they were ‘financially prepared’ to deal with significant life changes 62 per cent said they were confident that they are, 21 per cent are not very confident and 10 per cent are not at all confident.
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