If they were to receive unexpected wealth, almost two thirds of Canadians aged 35+ would pay down debt or share their good fortune with friends and family.
A new survey from BMO Wealth shows that an estimated $1 trillion in personal wealth will transfer to the next generation of Canadians by 2026 and roughly 70% of this will be in financial assets.
The poll found that the financial priorities of respondents shifted when asked to consider them before a windfall and afterwards with achieving lifestyle goals in retirement replaced by sharing wealth and paying off all debts.
|
Before financial windfall
|
After financial windfall
|
|
Achieve lifestyle goals in retirement
|
55%
|
Share with family, friends, charity
|
64%
|
|
Increase my wealth
|
49%
|
Pay off all debts
|
64%
|
|
Protect current wealth
|
40%
|
Invest in the stock market,
a business or property
|
47%
|
|
Manage taxes in retirement
|
27%
|
Financial goals or priorities
would remain the same
|
38%
|
|
Financially help my (grand) children
|
20%
|
Buy the big ticket items
I always wanted
|
17%
|
|
Other
|
4%
|
Splurge and spend freely
|
10%
|
|
Other
|
1%
|
But with unexpected wealth, comes risk.
“Regardless the source of wealth, receiving a substantial sum of money unexpectedly carries sociological and psychological implications. While the significant investment opportunities can be exciting, be cautious of psychological issues associated with sudden wealth syndrome," said Chris Buttigieg, Director, Wealth Institute, BMO Wealth Management.