Recent research from Canada has found that many Canadians may have unrealistic expectations when it comes to the value of expected future inheritances.
The study, by Investors Group, found that 57% of Canadians, who think they know the size of an expected inheritance, believe it will be worth over $100,000. However, the average amount received by people who had already been given an inheritance was $57,000.
Nearly half of Canadians aged sixty or more are concerned they are going to need their savings to fund their retirement and won’t have money left to give to their survivors. Significantly, only one-quarter are willing to make personal sacrifices to ensure an inheritance for their family.
“As people live longer and have higher expectations for their retirement, younger generations may have to adjust their own expectations about the anticipated transfer of wealth,” says Christine Van Cauwenberghe, Director, Tax and Estate Planning at Investors Group. “This has financial planning implications and strategies that must be considered by both recipients and benefactors – ranging from retirement planning and saving to tax planning and insurance planning.”