The study showed that while Gen Z and millennials – as well as boomers – may receive a wealth transfer because of a family member or friend’s death, younger Canadians were actually initiating wealth transfer because of immediate life needs or events. 38% did because of a job loss or unforeseen home or health expense, while 33% did due to inflation and interest rates. Another 25% did for major purchases, such as buying a home or car or doing home renovations, and another 18% did because of significant life events, such as having a child, graduation, or birthday.
So, instead of saving money to pass on to the next generation – as boomers have – the younger clients were saving money for what they needed, spending that, and saving again. They also tended to pass on their wealth to help family or friends who need edfinancial support.
Read more: ‘Many Canadians are rethinking what retirement means to them’
“We really need reassess the traditional bank of mom and dad stereotypes and consider that it now is the bank of siblings or friends,” said Klein-Swormink. “That really makes us reconsider Gen Z and millennials’ needs in terms of financial planning and tax planning
“It really is about creating opportunities for people to design the life that best suits their goals and needs because they really are challenging the norms around how they work, how they generate wealth, and what they do with the money and when they do it. So, we need to get curious and ask more questions and consider how we navigate that in support of our clients.
