Nearly 9 in 10 Canadians who work with a human financial advisor feel confident about their financial future, according to a newly released report by Fidelity Investments Canada. This striking statistic emerges at a time when robo-advisors and AI-powered financial tools are increasingly available to investors across the country.
The 2023 Financial Confidence Index reveals that despite rapid technological advancement in the financial services sector, the human touch remains paramount for most Canadians navigating their financial journeys. Among those working with a professional advisor, 87% report feeling either “very confident” or “somewhat confident” about their financial future, compared to just 56% of those managing their investments independently.
“Technology has certainly changed how Canadians access financial information, but this data confirms what many industry veterans have long suspected,” says Michelle Munro, Director of Tax and Retirement Research at Fidelity Investments Canada. “The personalized guidance, emotional support, and accountability that comes from a relationship with a human advisor creates a foundation for financial confidence that automated systems haven’t yet replicated.”
The report surveyed over 1,500 Canadians across age demographics and wealth brackets, exploring the correlation between advisory relationships and overall financial wellness. Particularly notable was the finding that financial confidence scores were highest among those who had maintained relationships with their advisors for five years or longer.
This preference for human guidance persists even as major Canadian banks and fintech startups continue launching sophisticated digital advisory platforms. TD’s GoalAssist, Wealthsimple’s automated portfolio management, and RBC InvestEase have all gained users, yet the migration toward purely digital solutions appears to be slower than initially projected by industry analysts.
Peter Katevatis, Senior Investment Advisor at Canaccord Genuity Wealth Management in Vancouver, isn’t surprised by the findings. “The algorithms behind robo-advisors can build portfolios, but they can’t hold your hand during market volatility or help you navigate the emotional aspects of major life transitions like retirement, inheritance, or caring for aging parents,” he explains. “These deeply human experiences require empathy and contextual understanding.”
The study identifies several key areas where human advisors create distinctive value. Retirement planning tops the list, with 74% of respondents citing it as their primary reason for seeking professional guidance. Estate planning, tax optimization strategies, and intergenerational wealth transfer follow closely behind.
Market turbulence also drives Canadians toward human advisors. During periods of significant volatility, such as the early stages of the COVID-19 pandemic in 2020, advisory firms across Canada reported surges in new client inquiries. Behavioural finance experts attribute this to the “emotional circuit breaker” that advisors provide—helping clients avoid panic selling or other wealth-destructive behaviors during periods of market stress.
The demographic breakdown reveals interesting patterns as well. While millennials (born 1981-1996) show greater initial comfort with digital solutions, their preference for human advice increases markedly around major life milestones such as home purchases, marriage, or starting families. Gen X respondents (born 1965-1980) display the strongest preference for hybrid models that combine digital tools with professional guidance.
“What we’re seeing isn’t necessarily a rejection of technology,” notes Frank Danielson, founding partner at Danielson Group Wealth Management. “The most successful advisory relationships today integrate digital tools for efficiency while preserving the irreplaceable human elements of financial planning—understanding a client’s values, fears, and aspirations in ways algorithms simply cannot.”
The report also highlights a concerning confidence gap along gender lines. Women report significantly lower financial confidence scores than men, regardless of income level. However, this gap narrows considerably among women who work with financial advisors, suggesting that professional guidance may help address longstanding gender disparities in financial empowerment.
Industry experts suggest that the future likely belongs to neither purely digital nor exclusively human models, but rather to integrated approaches. “The question isn’t whether technology or human advisors will win,” says Munro. “It’s about how we can combine both to create better outcomes for Canadians across the wealth spectrum.”
Regulatory factors may also contribute to Canadians’ preference for human advisors. The implementation of Client Focused Reforms by the Canadian Securities Administrators has increased transparency around fees and potential conflicts of interest, potentially strengthening trust in the advisory profession.
Meanwhile, financial literacy initiatives across provinces continue to emphasize the importance of professional guidance. Ontario’s introduction of financial literacy into school curricula includes modules on when and how to work with financial professionals—potentially influencing the next generation’s approach to advice.
For Canadians considering whether to work with a human advisor, the report suggests focusing on credentials, fee structures, and communication style rather than chasing past performance metrics. The Financial Planning Standards Council notes that advisors with CFP (Certified Financial Planner) designations must adhere to fiduciary standards that place client interests first.
As Canada’s population ages and the largest intergenerational wealth transfer in history unfolds—with an estimated $1 trillion passing to younger generations over the next decade—the demand for nuanced, personalized financial guidance appears likely to grow further.
“Ultimately, money is deeply emotional for most people,” concludes Katevatis. “It represents security, opportunity, legacy, and values. The technology supporting financial services will continue evolving, but the human relationship at the core of good financial advice remains irreplaceable for most Canadians seeking confidence in their financial futures.”
