Survey examines whether or not parents will leave money to their kids
TORONTO, Nov. 7 /CNW/ - More than half of Canadians in their fifties
(57 per cent) have received or are expecting to receive money from their
parents and in-laws, according to the results of an RBC poll. As a result of
the largest and most anticipated transfer of wealth in history, many boomers
say they will do things differently than their parents when it comes to
bequeathing their wealth.
"Boomers are expected to inherit up to $1 trillion from their parents,"
said Mike Reed, head, retirement and affluent client strategy, RBC. "Given the
enormous amount of wealth that will change hands within the next decade, this
transfer needs to be managed effectively through proper planning, particularly
as people head into retirement."
Approximately three in five respondents in their fifties (61 per cent)
expect to give money, during their lifetime, to their own adult children. Of
those, more than two in three (69 per cent) say they will do so because they
want to see their children enjoy their lives.
While a majority of those in their fifties expect to give money to their
adult children, nearly one in ten (7 per cent) respondents say that they would
not, believing that their children need to earn their own way or wait until
their parent dies. Other respondents say that they will need the money
themselves or that their children do not handle money very well.
Although Canadians in their fifties have considered who will benefit from
their accumulated wealth, three-in-ten (29 per cent) feel that they have not
given enough consideration to their legacy. When contemplating their legacy,
seven in ten respondents (70 per cent) feel strongly that they want to be
remembered as a person who enjoyed time with their family. This family focus
is also reflected in the finding that four in five of those in their fifties
(81 per cent) believe that their children are their legacy.
Despite their family orientation, boomers are not confident that their
efforts to support them will be sufficient, only one-in-five (20 per cent)
respondents in their fifties believe they have done enough to make sure that
their family will be okay.
"One message that came through clearly in our research is that, for most
people, family comes first - and this finding is echoed in our experience with
clients who participate in our retirement life planning program Your Future by
Design," commented Reed.
The RBC Retiring Boomers Poll was conducted by Ipsos Reid from August 3
to 8, 2007. The online survey was based on responses from 1,225 adult
Canadians between the ages of 50 and 59 with household assets of $100,000 or
more. With a sample of this size, the results are considered accurate to
within +/-2.8 percentage points, 19 times out of 20, of what they would have
been had the entire adult Canadian population been polled. The margin of error
will be larger within regions and for other sub-groupings of the survey
Your Future by Design(R) is RBC's distinctive approach to help clients
identify, plan, and realize their goals for retirement. With the guidance of
RBC financial planners and investment and retirement planners, Your Future by
Design helps clients create a blueprint for a successful lifestyle and
financial plan for retirement based on what is truly important to them in key
areas in life, including family, health, home, lifestyle, work/business, mind
and spirit, and legacy. To find out more about how RBC can help build a
blueprint for the future, visit www.rbc.com/yourfuture or call 1-866-335-4055.
For further information:
For further information: Media contacts: Rina Cortese, RBC Wealth
Management, (416) 974-6970; Jackie Braden, RBC Media Relations, (416)