A new survey by Co-operators has found that poor financial advice is not only costing Canadians money but may also be leaving many without adequate insurance protection, highlighting growing gaps in financial literacy and risk management across the country.
According to the report, nearly one in three Canadians (32%) said they have been negatively affected by bad financial advice. While most reported direct financial losses, many also faced emotional strain, with 26% saying it increased their stress and 16% delaying major financial goals such as home purchases or retirement planning. These setbacks, the report suggests, could have a knock-on effect on insurance coverage and financial preparedness, as Canadians struggle to balance short-term pressures with long-term protection needs.
Co-operators found that 70% of Canadians believe they can recognize poor advice, yet nearly a third still followed guidance that hurt them financially. Millennials were hit hardest, with 80% saying they lost more than $1,000 due to bad advice. Much of this misinformation came from social media and online sources, where unverified tips about investments, budgeting, and insurance coverage have become widespread.
The insurer said the rise of digital “experts” and conflicting financial messages has left many Canadians confused about what type of protection they truly need. This confusion can lead to underinsurance, particularly when individuals rely on informal advice rather than professional guidance.
The survey also noted that advice from friends and family remains a common source of financial missteps, with 31% of respondents saying they had followed personal recommendations that proved costly. Co-operators noted that outdated financial advice may not reflect today’s complex risk environment, where inflation, economic volatility, and climate-related threats all influence household protection needs.
The insurer emphasized that licensed financial and insurance advisors play a critical role in helping Canadians make informed decisions about their coverage, investments, and overall risk management. According to the survey, those who work with an advisor feel significantly more confident and better protected than those who do not — evidence, Co-operators said, that expert, regulated advice remains the best safeguard against both financial loss and underinsurance.
