As Canadian Boomers age, concern is building over the approximately $1 trillion that will be left behind in the country’s largest wealth transference in history. We’re seeing anxieties rise over this wealth transference, as well as conflicting opinions on what Boomers should be doing with their money leading up to and into their retirement. The Bank of Montreal, one of Canada’s top financial institutions, recently released a wealth transference report, predicting that on average each Boomer will bequeath around $100,000. What happens to this money? According to BMO’s study, 79 percent of beneficiaries will use it to reduce debt. Undoubtedly, student debt could be part of that bucket.
Stacked next to Boomers’ wealth transference anxieties, many are wondering: Do I support my kids now and risk my financial future or wait till after I die? A June study by Scotiabank highlights this financial dilemma. “Not surprisingly, Baby Boomer remorse over retirement planning arises as obstacles begin to appear in the path toward the comfortable lifestyles that we all dream of,” says Lisa Ritchie, Scotiabank’s SVP of Customer Knowledge and Insights, in a press release.
With these Boomer concerns making headlines, banks like BMO and Scotiabank are getting ahead of the issue and pointing consumers to the financial counseling and planning they provide—something we’ll see more brands do as this subject gains traction among Boomers.