Scotiabank: COVID-19 Impacted 45% of Canadians’ Retirement Plans

Scotia Global Asset Management Investor Sentiment survey results released Monday show that 32% of respondents are more worried about not being able to fund their retirement than a year ago, and 45% say COVID-19 has impacted their retirement plans.

These results are consistent with Scotiabank’s (TSE: BNS) annual Worry Poll, released last month, which found that 75% of Canadians are concerned about their financial situations. 

In addition, there is an increase in the level of confidence of people who work with a financial advisor. In fact, 87% of Canadians who have consulted an advisor in the last six months say that their advisor has given them confidence in their investments. By comparison, only 67% of those who had not met with an advisor felt confident. 

Management Commentary 

“These results indicate that while investors are concerned about meeting their retirement goals, regular meetings with financial advisors significantly alleviate those concerns. In a continually changing environment, the value of advice prevails,” says Neal Kerr, Head, Scotia Global Asset Management (Canada). 

Wall Street’s Take

On January 19, Barclays analyst John Aiken kept a Hold rating on BNS with a price target of C$96. This implies 8.5% upside potential.   

The rest of the Street is bullish on BNS with a Strong Buy consensus rating based on six Buys and two Holds. The average Bank of Nova Scotia price target of C$94.14 implies 6.4% upside potential to current levels.  

TipRanks’ Smart Score  

BNS scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock returns are very likely to beat the overall market. 

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