Sun Life survey reveals that wealthy Boomers and their younger heirs are out of sync
A huge wealth transfer could see $1 trillion in assets passing from one generation to another in the next few years, but are expectations set to be met or shattered?
A new survey from Sun Life finds that the wealth of the Boomer generation may surprise their Millennial heirs, which should provide opportunity for financial advisors and investment professionals to help newly minted Canadians manage their wealth.
The poll reveals that Millennials are expecting to receive an inheritance averaging $309,000, but Boomers indicate that they will be passing down an average $940,000 or more than one million dollars among those who work with a financial advisor.
However, the research also highlighted some serious gaps in financial planning, especially given the significant sums that are involved.
Of the 44% of Boomers who said they intend to leave an inheritance, less than half (47%) have an estate plan in place and just 26% have discussed their intentions with their heirs.
Putting wealth to work
More thought has gone into the matter by those set to inherit, with 57% of Millennials who expect to receive a financial legacy planning to add it to their retirement savings, while 55% plan to use it to offset housing costs, and 36% will use it to pay down debt.
"Receiving an inheritance presents a huge opportunity for Millennials whose generation has faced immense economic pressure including volatile interest rates and exorbitant housing costs," said Brian Burlacoff, Advisor, Sun Life. "It's important for Boomers and Millennials alike to have transparent conversations about estate planning and it pays to start early. Working with a trusted professional who can offer holistic advice and solutions will be particularly beneficial to Canadians who are concerned about preserving their wealth, protecting their heirs from unexpected tax burdens, and having enough money in retirement to live a full and healthy life."
