New research from the Financial Consumer Agency of Canada (FCAC) reveals a stark shift in how Canadians seek financial guidance and the growing risks that come with it. According to new survey data, 76% of Canadians that have sought financial advice in the past 12 months relied on free sources.
Friends and family were the most common source, followed by banks, investment firms, insurance providers, and professional advisors. General financial planning, particularly around savings and investment strategies, was the most frequently requested type of advice.
Canadians aged 18 to 34 were also more likely than older adults to turn to informal channels. Nearly 57% of this age group consulted family or friends, while 18% sought guidance through social media. In contrast, only 20% of younger Canadians accessed professional advisors. Older Canadians tended to rely more heavily on formal sources, including banks and insurance providers.
As more people turn to informal and free sources of advice rather than professional channels, the findings underscore widening gaps in financial literacy and signal urgent implications for insurers, financial institutions, and policymakers alike.
The agency's Spotlight on Canadians' Use of Financial Advice drew on data from the 2024 Canadian Financial Capability Survey (CFCS), a national survey conducted every five years since 2009. The survey assesses Canadians' financial well-being and informs policy and literacy initiatives. The CFCS surveyed nearly 8,000 respondents across Canada between February and March 2024. Results showed that
According to the survey, income and educational attainment influenced advice-seeking behavior. Canadians with lower incomes, those whose education ended at high school, and individuals with disabilities or living with someone with a disability were the least likely to seek financial guidance. This suggests gaps in access to financial information that may disproportionately affect vulnerable populations.
FCAC commissioner Shereen Benzvy Miller emphasized the importance of trustworthy guidance, noting that reliable advice allows Canadians to make informed decisions. She also highlighted emerging risks in the financial advice landscape, including AI-driven advisory tools, social media influencers, and potential fraud, underscoring the need for literacy initiatives that reflect Canada’s diversity. Free advice remains available for those facing financial hardship, offering a pathway to informed decision-making regardless of income or background.
For financial institutions and insurance providers, the survey signals both opportunity and responsibility. With informal advice channels dominating, firms may need to strengthen outreach and education, ensuring Canadians understand the range of options available, from free guidance to professional advisory services tailored to risk management, investment planning, and insurance coverage.
