World Financial Group’s focus stems from its latest Financial IQ Study conducted in the United States and Canada, finding only 37% of Canadian households confidently manage their personal finances to achieve future security.

September is Life Insurance Awareness Month (LIAM), and World Financial Group (WFG) is bringing attention to the importance of including life insurance as part of a personal financial strategy. Understanding the value of life insurance and the options that best fit individual circumstances is key for individuals and families. With high prices and high interest rates, Canadian households continue to feel the strain and concern of not being prepared for the unexpected.

"The goal of WFG independent agents is to guide individuals and families in achieving financial security. Currently Canadians are anxious about their future and financial situation," said Rick Williams, president of World Financial Group Insurance Agency of Canada Inc. “Life Insurance Awareness Month is a great time to educate the lower and middle-market communities about the many available life insurance solutions and financial options."   

WFG is committed to empowering individuals with the knowledge they need to make informed decisions about their financial futures. Part of that commitment is hearing about financial needs directly from clients and the general population. Its independent Financial IQ™ study periodically assesses financial resilience among both the U.S. and Canadian general population, WFG insurance agents, and WFG clients. Findings in 2023 showed that 32% of Canadian households dipped into savings in response to the rising cost of living. According to the study, this increase in daily expenditures is eroding financial resilience and this type of prolonged pressure puts households at increased risk should another crisis hit.

In the study, financial confidence followed a similar trajectory. Only 37% of Canadian households were confident that managing their personal finances will help them achieve financial security in the future, down from 39% the prior year.

"Results from the recent WFG Financial IQ Study shows a gap between perceived and actual comprehension of financial information,” added Williams. “By improving understanding of even basic financial concepts, our agents believe that people within their communities can improve their financial futures and learn to handle unexpected issues, which will help them feel more secure during economic uncertainty."

Additional findings from the Financial IQ Study include:

More than half (58%) of Canadian households surveyed were found to have reduced day-to-day expenses in response to financial strain over the last year.

• The rising cost of living is forcing Canadians to make significant sacrifices. Almost a third (32%) of households have dipped into their savings in response to the rising cost of living.

A third (36%) of Canadian households surveyed feel anxious or concerned about their current financial situation.

• Over a third (36%) of the Canadian general population feel anxious about their current financial situation, 37% feel concerned, and 25% feel strained by their current situation.
• Taking steps to plan and manage money can help. One in five (20%) of WFG clients indicated they are far less likely to feel anxious about their current financial situation and just 14% feel strained.

60% of Canadians surveyed aim to be financially secure in retirement.

• Financial aspirations are deeply personal and tied to family life, ambitions, and values. Survey findings indicated 78% of WFG clients have a greater range of long-term financial ambitions and goals compared with the general population at 52%.
• Financial outlays can happen at any moment, but being prepared for such situations is the key to staying financially resilient. Nearly half (46%) of WFG clients feel they would be able to sustain basic financial outlays for over a year were they to suddenly be unable to continue working, as opposed to 28% of the general population.
• A large number (80%) of WFG clients feel they are somewhat financially prepared for an unexpected life event, compared to 62% of the Canadian general population.

Learn more about WFG's services and how their independent licensed agents can help ensure you have a financial strategy and protection in place to secure your short- and long-term financial future. Test your financial literacy and financial resilience by assessing your understanding and confidence around finances at www.WorldFinancialGroup.com.

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Press Inquiries: WFGpressinquiries@transamerica.com

About World Financial Group (WFG)

World Financial Group’s more than 78,000 agents in the United States and Canada are dedicated to helping individuals, families, and businesses achieve financial security through life insurance, retirement, and wealth-building strategies.

In Canada, World Financial Group Insurance Agency of Canada Inc. (WFGIAC), offers life insurance and segregated funds. WFG Securities Inc. (WFGS) offers mutual funds by properly licensed individuals. WFGIAC and WFGS are affiliated companies. The WFG companies are wholly owned indirect subsidiaries of Transamerica Corporation.

To learn more, visit https://www.WorldFinancialGroup.com/

Study Methodology

The Financial IQ™ by WFG has been developed to assess the financial resilience of households and to measure their financial readiness to withstand financial shocks.

The Financial IQ provides an index score based on responses to five questions asked of more than 10,000 respondents in the U.S. and Canada as part of the research (8,000 U.S. households and 2,000 Canadian households). FIQ ranks financial resilience on a scale from 0 to 10. A high index score is ranked above 6, scores from 4 to 6 are classified as medium, and a low score is under 4. To view and download the results of the study, please visit MyFinancialIQ.com. The website also offers online tools that help users assess their own Financial IQ score.

WFG partnered with independent research agency H/Advisors Cicero to develop insights on how people manage their finances. Specifically, the research benchmarks levels of financial literacy, capability and resilience across the U.S. and Canada. Fieldwork was conducted between July 20 and August 10, 2023.

The independent study asked respondents about their financial situation, motivations, and financial understanding. It assessed the understanding, control, preparedness, and confidence individuals held around their finances and determined how this affected their financial resilience.

The responses were aggregated to create a Financial IQ score, from 0-10, with scores under four categorized as ‘low’, scores between four and six as ‘medium’, and more than six as ‘high’ FIQ scores. In the latest research, the average score for the U.S. general population is 5.3/10, a decrease from 5.6 in 2022, suggesting the average American home is now less resilient in managing finances than the prior year. FIQ scores of WFG clients climbed from 5.8 in the first wave to 6.7 demonstrating improved financial resilience for WFG clients.

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