Survey reveals nearly one in three Canadians lose money or delay goals after following poor guidance
Nearly one in three Canadians have suffered financial setbacks after following bad advice—often losing thousands and delaying major life goals.
Jess Baker, executive vice president and chief retail sales officer at Co-operators, notes that “advice that might be generally accepted as good, doesn’t necessarily mean it’s good for you.”
She emphasizes that “financial advice isn’t one size fits all,” and explains that their advisors work individually with clients to help them build a future tailored to their unique needs.
A new national survey from Co-operators reveals that 32 percent of Canadians have been negatively impacted by poor financial guidance.
Of those affected, almost half (49 percent) lost money, more than a quarter (26 percent) reported increased stress or anxiety, and 16 percent were forced to delay major financial milestones.
For over three-quarters, the cost was significant: 77 percent say the hit exceeded $1,000, with Millennials hardest hit (80 percent).
Despite seven in ten Canadians (70 percent) expressing confidence in their ability to spot bad advice, the reality is more complex.
Many are overwhelmed by a flood of mixed and often contradictory information, especially online.
Nearly half (48 percent) say the sheer volume of conflicting advice leads to confusion, with six in ten blaming social media.
Younger Canadians are particularly vulnerable—one in five Millennials (19 percent) and one in three Gen Z (31 percent) have acted on bad advice from social media, while 15 percent of Gen Z have done so based on online forums and 10 percent from generative AI.
The source of poor advice is not limited to digital channels.
For every generation except Gen Z, friends and family remain the most common source of misguided guidance, averaging 31 percent across the country.
Yet, less than half of Millennials and Gen Z say they would pass along the same financial advice they received, and Gen Z are more than twice as likely as Boomers to feel pressured to manage finances as their parents did.
A growing gender divide is also emerging.
Only 38 percent of Millennial women believe advice from older generations is still relevant, compared to 48 percent of Millennial men.
Among Gen Z, just 34 percent of women see handed-down advice as relevant, versus 46 percent of men. Women are more likely to receive warnings about credit card misuse, while men are more often encouraged to invest in riskier assets like crypto or individual stocks.
Interestingly, although men (76 percent) are more confident than women (65 percent) in spotting bad advice, they are nearly twice as likely to fall victim (40 percent vs. 24 percent) and report higher losses.
Professional guidance appears to make a difference.
Canadians who work with a financial advisor report greater confidence in their finances (64 percent) compared to those without one or who are unsure (44 percent).
