TD survey reveals both young and old Canadians
are financially unprepared for death, divorce and illness
TORONTO, Oct. 19, 2016 /CNW/ - For Canadians coping
with unforeseen life events, emotional stress is not the only
consideration on their minds. According to a recent TD survey, many
Canadians experience financial stress when they or an immediate
family member suffer from a serious illness (61 per cent), death of
their partner (43 per cent) or divorce (46 per cent). Trying to
sort out finances while dealing with a serious life change can
distract from what's important, such as health and family, which is
why it is essential to plan ahead, as well as have a strong support
system in place when emotional and financial stress strikes.
"Whether you're a young adult who's trying to establish
yourself, or an older individual enjoying retirement life, the best
time to plan for the unexpected is before the unexpected has
happened," says Lee Bennett, Senior
Vice President, TD Wealth Financial Planning.
Bennett stresses planning ahead is always important, but
particularly so when it comes to undesirable scenarios. According
to the TD survey, three groups stood out as benefiting from
planning ahead.
The Silent but Stressed Generation
Almost seven in 10 Canadians (67 per cent) in the Silent
Generation (Canadians between 70 and 90 years of age) said their
top financial worry following the death of their partner was, or
would be the impact on their lifestyle. Other stresses identified
by these Canadians include outstanding financial debt (31 per cent)
and their retirement plan (20 per cent).
Bennett explains that planning ahead to ensure you and your
spouse have a will in place and have shared your wishes for your
estate will help reduce stress if one of you passes away. "It's an
important conversation to have with one another while you're both
alive," said Bennett, "in order to feel reassured that the other
person will be taken care of after you're gone."
Family therapist Renee Climans
has been helping Canadians overcome difficult life changes for more
than 30 years and adds that it is beneficial to seek out guidance
to help overcome hurdles that can surface when losing a spouse,
regardless of your age.
"People will often associate asking for help as a sign of
weakness, which is not at all true," said Climans. "Surrounding
yourself with friends and professionals who can offer financial,
emotional or logistical support in the face of death allows you to
focus on what matters most – taking care of yourself."
Unhealthy and Full of Heartache
Having a support system is important in many situations,
particularly when you are facing serious illness. The TD survey
found Canadian women are more likely than men to experience
financial stress when dealing with serious illness (64 per cent
compared to 57 per cent).
The top stressor cited by women dealing with financial stress
during their own or an immediate family member's illness was
worrying about the inability to pay bills (68 per cent), followed
by managing outstanding debt (33 per cent) and the ability to
support family (33 per cent). Bennett recommends having a three- to
six-month emergency fund in place to help ease these worries.
If you don't have backup funds set aside, there are steps you
can take over the course of an illness to manage additional
financial pressure. "Managing the financial burden that illness can
present is never easy and many people are not sure where to start,"
says Bennett. "Look for ways you can liquidate funds or free up
cash flow to help cover additional costs that arise with treatments
and medications." Bennett adds that a financial planner can help
you assess your financial options and determine the best course of
action when an unexpected illness arises.
Young and Divorced
Many Canadian Millennials and Gen-Xers are balancing a number of
priorities – from finishing school and establishing a career to
getting married and raising a family – so when an unanticipated
separation or divorce occurs, many find themselves both financially
unprepared and consequently, stressed. To help reduce financial
stress, nearly one quarter (23 per cent) of divorced or separated
Millennials or Gen-Xers delayed their divorce/separation because of
unexpected costs.
"The thought of divorce can be scary, as it can easily derail
your savings plans and significantly impact your financial future,"
says Bennett. "If you find yourself down a difficult path, work
with a professional to help lead you in the right direction.
Whether that means splitting assets right away or continuing to
live together while you save up some money, a Financial Planner can
help assess your immediate needs and revisit your goals in order to
develop a plan that will help achieve those objectives."
For Canadians going through a breakup, a Financial Planner can
manage financial implications and you may also want to consider
engaging a mediator or therapist to help keep things civil while
parting ways. Climans stresses that building a support system can
make the process of managing a breakup less emotionally and
financially stressful. "When emotions are running high, finding a
third-party to help resolve differences can help couples end their
relationships on amicable rather than adverse terms," she says.
Regardless of the challenge you may experience throughout life,
both Bennett and Climans agree that some preemptive planning and
having the right support system in place can help you cope with the
unexpected and be on your way to creating a bright future.
About TD Financial Stress Poll
TD Bank Group commissioned Environics Research Group to conduct a
custom survey of 6,337 Canadians aged 18 and older including three
different subgroup of Canadians for this report. Part A includes
all Canadians, with a subgroup of 970 who have suffered or had a
family member who suffered a serious or life-threatening illness,
including 529 women. Part B is a subgroup of 4,076 Canadian widows
and those who are living with a partner, included 83 from the
Silent Gen, while Part C is a subgroup of 1,242 Canadians who have
been divorced or separated including 337 Millennials and Gen X.
Responses were collected between February 25
and March 17, 2016.
About TD Bank Group
The Toronto-Dominion Bank and its
subsidiaries are collectively known as TD Bank Group ("TD" or the
"Bank"). TD is the sixth largest bank in North America by branches and serves
approximately 25 million customers in three key businesses
operating in a number of locations in financial centres around the
globe: Canadian Retail, including TD Canada Trust, TD Auto Finance
Canada, TD Wealth (Canada), TD
Direct Investing, and TD Insurance; U.S. Retail, including
TD Bank, America's Most Convenient Bank, TD Auto Finance U.S.,
TD Wealth (U.S.), and an investment in TD Ameritrade; and Wholesale
Banking, including TD Securities. TD also ranks among the
world's leading online financial services firms, with approximately
10.8 million active online and mobile customers. TD had
CDN$1.2 trillion in assets on
July 31, 2016. The Toronto-Dominion
Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.
SOURCE TD Wealth