- More than half of Canadians (57 per cent) believe that tax
planning should be a year-round consideration.
- However, only 27 per cent make it a priority throughout the
year.
- Just one-third (33 per cent) are very confident that they
are taking advantage of all possible tax breaks.
WINNIPEG, MB, March 21, 2024 /CNW/ - According to IG
Wealth Management's (IG) annual tax study, more than half of
Canadians (57 per cent) appreciate the importance of year-round tax
planning. However, few prioritize it and could be leaving their
hard-earned money on the table this year.
The study, conducted in partnership with Pollara Strategic
Insights, found that:
- Only 27 per cent of Canadians make tax planning a year-round
priority.
- Just one-third (33 per cent) are very confident that they are
taking advantage of all possible tax breaks.
- Seventeen per cent are very knowledgeable about how certain
life stages or events can bring new tax issues.
"Canadians can benefit from year-round tax planning that ideally
should be wrapped into their overall financial plan," said
Damon Murchison, President and CEO
at IG Wealth Management. "Prioritizing tax planning outside of tax
season alone can help lessen your tax bill, maximize available tax
credits and deductions, and ultimately, allow you to build and keep
more of your wealth."
Understanding Tax Implications
The study also examined the often-overlooked tax implications of
major purchases. When making a major purchase, including buying a
home, secondary property, car, or investing in home renovations,
only one-third of Canadians reported that they factored in the tax
implications in advance of the purchase. Similarly, even fewer
Canadians (17 per cent) are very knowledgeable of how certain life
stages or events, including getting married, having children,
retiring or passing on their estate, can bring new tax
issues.
"It's a concern that many lack understanding of the tax
implications of major purchases and life events," noted
Mr. Murchison "It's important to seek professional advice from
a financial advisor who can help build knowledge around the tax
implications of significant life events and of larger, more complex
asset purchases, with an overall view of the impact on your wider
financial plan."
Comprehensive Tax Planning Maximizes
Earnings
The study also uncovered that while half of Canadians seek out
professional tax advice (54 per cent), only 17 per cent get this
advice from a financial advisor. "An advisor is unique in that they
take a comprehensive approach to financial planning, building an
integrated and personalized plan that accounts for every aspect of
your financial life in the most tax-efficient manner," concluded
Mr. Murchison.
About the Pollara Study
This study was conducted with
an online sample of 1,229 adult Canadians aged 18 years and above.
This research was conducted from February
15th to 28th, 2024. Results from a random sample of this
size can be considered accurate to within ±2.8%. 19 times out of
20.
About IG Wealth Management
Founded in 1926, IG Wealth
Management is a national leader in delivering personalized
financial solutions to Canadians through a network of advisors
located across Canada. IG Wealth
Management has $125.4 billion in
assets under advisement as of February 29,
2024, and is a member of the IGM Financial Inc. (TSX: IGM)
group of companies. IGM Financial, together with its subsidiaries,
is one of Canada's leading
diversified wealth and asset management companies with
approximately $247 billion in total
assets under management and advisement as of February 29, 2024.
SOURCE IG Wealth Management