TORONTO – One of Canada’s big banks estimates that $750 billion will be inherited by members of the Boomer generation over the next decade.
CIBC says there are currently about 2.5 million Canadians over the age of 75 with a total net worth of $900 billion or more.
The bank adds that the beneficiaries will be mainly Canadians currently aged between 50 and 75 years.
CIBC says that it’s difficult to estimate how much of the money will be passed on to the Boomer generation in the future, so it has focused on what Canadians have actually received through inheritance.
It says the average inheritance received by the 50-75 age cohort over the past decade was $180,000.
CIBC forecasts the average inheritance will be higher than that, due to the increased value of assets — particularly homes.
“This significant wealth transfer could impact important economic variables such as wealth distribution, savings, labour market participation, start-up activity, and real estate markets,” writes CIBC economist Benjamin Tal.