Nearly half (49 per cent) of Canadians don’t consider an inheritance part of their long-term financial future, according to a new survey by investment firm Edward Jones Canada.
The survey also found 50 per cent of respondents between ages 18 and 54 who earn less than $40,000 per year said they don’t expect an inheritance, while 61 per cent of those in the same age range earning more than $100,000 per year said the same.
Among older Canadians, aged 55 to 64, the survey found more than 60 per cent don’t expect a windfall and two-thirds of those over age 65 felt the same way.
Read: Most Canadians expecting to fund own retirement: survey
“When it comes to your future, an inheritance can have a major impact on your financial strategy,” said Patrick French, principal of solutions tools and consulting at Edward Jones, in a news release. “Planning ahead so that you can have an appropriate strategy in place is crucial, whether or not you are not expecting an inheritance from your loved ones.”
For those planning to leave an inheritance, 60 per cent said they will offer a significant contribution to their loved one’s long-term financial future. Those closest to retirement appear the most optimistic about their ability to leave a financial gift: 61 per cent of those aged 55 to 64 and 57 per cent of those over age 65 said they’re planning to leave a significant contribution to a loved one.
“It’s not always easy to talk about, but we encourage Canadians to start the conversation about inheritance early so that they can plan accordingly,” said French.
Read: Almost half of working-age Canadians not saving for retirement: report