Many Family Members Rely on an Anticipated Inheritance
Canada has already started to see the biggest inter-generational transfer of wealth in its history, as Baby Boomers look set to inherit the wealth of their aging parents. In fact, most Canadians say they expect to receive an inheritance in the future. For many people, an inheritance will be central to enjoying a comfortable retirement. Without discussing such an inheritance beforehand, many Canadians may find themselves with far less than they expected to receive.
Currently, the average Canadian inheritance is about $100,000, although British Columbians are already inheriting much more than that; higher than anywhere else in the country. The price of real estate in B.C. alone is a huge factor. Over the next two decades about $1 trillion is expected to be passed on from one generation to another in Canada, with the primary beneficiaries being Baby Boomers.
When asked what they intended to do with their inheritances, planning for the future was the top concern for many. Most Canadians (91 percent) say they would save their inheritances for “key life events,” including retirement. Likewise, 79 percent of Canadians plan to use an inheritance to pay off debts, which could also help many afford a more comfortable retirement lifestyle.
