While a third (34 per cent) of Canadians aged 18 to 34 say an inheritance from their parents is crucial to meeting their retirement goals, 31 per cent of baby boomers say they don’t expect to leave their children any money, according to a new survey by Vanguard Group Inc.
The survey, which polled more than 1,300 Canadians, found while more than half (57 per cent) of gen-Zers expect to receive or have received an inheritance, 39 per cent said they don’t believe it will be important to pass on their assets.
More than a third (35 per cent) of Canadians aged 55 and older expressed concerns about needing their assets later in life, whether for unexpected health-care costs, prolonged retirement needs or simply to manage the rising cost of living.
A quarter of Canadians aged 55 and older said they currently have no plan for how they will transfer their wealth, while 31 per cent said they’ve discussed the transfer with the recipients.
“Canadians . . . are feeling the pressure of inflation and the rising cost of living and this impacts the transfer of wealth,” said Mario Cianfarani, head of sales and distribution at Vanguard Canada, in a press release. “This is a difficult conversation for many people and expectations may not match reality. A financial advisor can help navigate this tricky discussion with the whole family to ensure a more seamless transition.”
Read: 61% of Canadians afraid of running out of money in retirement: survey