A new online survey has found that more than half of Gen Z and millennial Canadians say they need financial inheritance to achieve their goals, including maintaining a personal life. get married, buy a house or have a baby.
Pollara Strategic Insights surveyed 1,517 Canadian adults between August 15 and 16 to better understand their remittance habits since the pandemic began.
The results show that 25% of Canadians aged 18 to 34 have received or transferred money since March 2020, compared with the national average across all age groups of 14%. Although they are the age group most likely to receive money, the survey shows that they also send more transfers than their former counterparts.
Fourteen percent of Gen Z and millennials have deposited, compared with one percent of respondents between the ages of 35 and 54 and four percent of respondents over 55.
Julie Petrera, senior strategist at Edward Jones, said: “We’ve all heard of the ‘mother and father’s bank’ supporting the younger generation through wealth transfers, but the data of we show a strong willingness of the younger generation to reciprocate this favor,” Julie Petrera, senior strategist at Edward Jones, the financial agency that commissioned the survey, said in a statement. announcement.
Differences in motivation were also observed to vary with age.
Younger generations have used wealth transfers to meet immediate needs. These include those related to: personal finances (38%) including job loss or health expenses; the economy (33%), including inflation; major purchases (25%) including home or car purchases; and major life events (18%) such as having a baby.
The death of a family member or acquaintance accounts for 51% of wealth transfers for the older group (those 55 and older) and 63% for those aged 35 to 54. By comparison, This reason only accounts for 28% of millennials and Gen Z respondents.
A report last year from IG Wealth Management found that 72% of parents surveyed were willing to help their children buy a first home, with an average of $145,000 per child.
According to a recent survey, a majority of Canadians (54%) are looking to leave an inheritance, or at least part of it, during their lifetime. Ensuring their inheritance is dispersed without dispute (34%) and providing immediate financial comfort to friends or family members are two variables most likely to influence influenced this choice the most (27%).
However, this represents a significant drop from last year, when 65% of Canadians said they wanted to leave an inheritance.
As inflation in Canada remains high, it is also found that young Canadians have taken many financial blows.
A survey last month by Finder.com found that 27% of millennials aged 27 to 41 reported taking out a loan to pay for their expenses, followed by 26% of Gen Zs aged 18 to 26.
Generation Z respondents are four times more likely to consider moving to have lower housing costs than Boomers, at 12% versus 3%.
“(The survey results) are a timely reminder that our strategic approach to finance should not be defined by what is considered normal or traditional, but by what is most important to you,” says Petrera.
“Your own circumstances, goals, and priorities should be the foundation for these important financial decisions.”